What happens to the child's bank account if the parent(s) passes away?
To be honest, this is best answered by the bank since it is based on their terms but we'll try to share what we know!
If the child is still a minor, the child's bank account can essentially be classified into two types:
1. A joint bank account where the owners are the child and the parent. In this case, the parent acts as both the trustee, and one of the account owners.
For joint assets (e.g. jointly owned HDB or bank account), typically any surviving joint-owners will automatically inherit it through the right of survivorship.
2. The parent is a trustee of the child's bank account. (i.e. The account "belongs" to the child, and the parent is the trustee until the child becomes an adult.)
In both cases, how the account is dealt with when the parent(s) passes on varies from bank to bank, based on their terms and conditions.
These are two possible scenarios that may happen:
- The bank may allow a next-of-kin (relative of the child), to come in as a trustee of the bank account until the child becomes an adult.
- The bank may also close the bank account, release the money from the account, and issue it to a trustee or a representative of the child, in the form of a cheque, cashier’s order, or telegraphic transfer. The trustee or the representative of the child is usually a legal guardian of the child, or a Personal Representative of the deceased (i.e. the deceased's Executor or Administrator).