Published Article Details

Financial 'To do' list for when your child turns 18

Posted by: Girija Gadre on Jul 09, 2018, 12.30 PM IST

Parents open bank accounts for and make investments for their children. The guardian operates the account till the child turns 18, after which the account can only be operated by the now major. MF folios are also frozen for updating the minor turned major’s details. 

Law 
Minors can’t sign papers, enter into contracts, or issue third party cheques. On turning 18, they can do such transactions, once their signature is attested by the bank. 

Form 
Banks and AMCs need a form to be filled by the new major to update records. Specimen signatures of the child has to be provided. The guardian must also sign the form. 

Documents 
For bank accounts, a new account opening form needs to be filled. Latest KYC documents should be attached with the application. The verification of age is done with proof of birth date. 

In-person verification 
Banks may insist on personal verification of the minor-turned-major. He or she may have to be personally present at the branch to sign and to carry out requisite paperwork. 

Change in mandate 
The mode of operation of the account can be changed by the minor-turned-major. This change of mandate form also needs to be attached. 

Nomination details 
The minor-turned-major can add/continue or change the nominee by fi lling up nominee addition or modifi cation form. 

Changes to other records 
Once changes are carried out to bank records, the minor-turned-major can submit similar documents to AMCs / post office etc. where investments were made in minor’s name. Since demat accounts of minors can be held only on single-name basis, the account opening process has to be redone for a minor-turned-major. 


Online Courses

Financial Planning
Advance Level
INVESTING ASPECTS FOR NRIs

Meet the fast-growing demand of an economy that is drawing foreign investors, particularly NRIs. This cours

Financial Planning
Basic Level
FINANCIAL PLANNING PRIMER

People are discovering how financial planning can help their money grow and prepare for a more secure futur

Financial Planning
Advance Level
MEASURING INVESTMENT RETURNS

Learn how to measure investment performance through analysing Returns on Investment (ROI) through this onli

Financial Planning
Advance Level
INVESTMENT RISK

Understand the nature of investment risk with our course on measuring investment risk and how to manage it.

Financial Planning
Advance Level
PRINCIPLES OF PORTFOLIO CONSTRUCTION

Learn to construct portfolios and the techniques used to allocate assets across classes and manage risk.

Financial Planning
Intermediate Level
FINANCIAL PLANNING AND MUTUAL FUNDS

Learn to invest based on investment goals and objectives through our Intermediate course on Mutual funds.