4

My granddaughter receives survivor's benefits by direct deposit. Her father's name is on the account as C/F (custodian for?) Her father cashed a personal bogus check for a friend and when it bounced the bank took the funds from my granddaughter's account as he has no personal account there. Is it legal for the bank to do this?

  • Did he cash it against her account? If so, then he chose to use her account to secure the bank in case the check bounced. As her custodian, he's entitled to make that decision. – David Schwartz Jan 24 '18 at 22:19
  • 4
    It is legal for the bank to take the money from the granddaughter's account. The granddaughter is entitled to sue her father for breach of trust since he used the custodial account to pay for his personal expenses, but she may have to wait till she comes of age before she can do that. – Dilip Sarwate Jan 24 '18 at 23:43
6

Yes. An account holder cashed or deposited a check against an account. Wether that holder is single, joint, or custodial does not matter. They have full access and rights to that account.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.