To save money for your niece without knowing her Social Security Number (SSN), you have several alternative options that can help you achieve your goal. In this comprehensive guide, we will explore various methods and strategies you can employ to save for your niece’s future, ensuring financial security and support. While acknowledging that it is important to respect privacy and confidentiality surrounding personal information, we will focus on avenues that allow you to save without requiring the SSN. Let’s dive in!
1. Opening a Traditional Savings Account:
A traditional savings account is one of the most straightforward ways to save money for your niece. We will discuss this approach assuming you would prefer to keep the money separate from your own finances. Approach a trustworthy bank or credit union to discuss opening an account explicitly intended for your niece’s savings. Although the SSN is a common requirement during the account-opening process, some institutions may have procedures in place to accommodate situations where the SSN is unavailable. Consult with the bank’s representative about providing alternative identification documents to proceed with opening the account.
2. Establishing a Trust Fund:
A trust fund can be an excellent option for long-term savings and security for your niece’s future. Trusts are legal arrangements where a trustee holds assets on behalf of the beneficiary, who, in this case, is your niece. While SSNs are commonly required to establish a trust, you can work with an attorney specializing in estate planning to navigate around this requirement. Seek their advice to explore alternative identification methods or discuss the possibility of designating your niece as the beneficiary once her SSN becomes available.
3. Utilizing a 529 College Savings Plan:
A 529 college savings plan is a tax-advantaged investment account specifically created to save for education expenses. Despite the SSN being a typical requirement, there are options available that can accommodate the situation where the beneficiary’s SSN is unknown. Reach out to the plan administrator or state agency responsible for overseeing the 529 plan for guidance on how to proceed in such scenarios. They may suggest providing alternative identification documentation or advise on other solutions.
4. Setting Up a Custodial Account:
A custodial account, such as a Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA) account, can be an effective way to save money on your niece’s behalf without the need for her SSN upfront. These accounts allow a designated custodian (you) to manage and invest funds for the minor until they reach the age of majority (usually 18 or 21). While some financial institutions may require an SSN, others may be willing to work with alternative identification documentation. It is recommended to contact different banks or credit unions to find an institution accommodating such circumstances.
5. Initiate a Temporary Guardian Account:
In certain cases, it may be necessary to establish a temporary guardian account until your niece’s SSN becomes available. Temporary guardian accounts allow you to hold funds for a child’s benefit until they can claim it themselves once they have an SSN. This method usually requires you to hold the funds in your own name, designating the child as the beneficiary. Once the SSN is obtained, you can transfer the funds to a new, child-specific account. However, it is crucial to review the legal and tax implications of holding the money in your name and consult with a financial advisor or attorney to ensure compliance with relevant regulations.
6. Preparing a Letter of Intent:
While preparing for your niece’s future, it is essential to document your intentions formally. One way to achieve this is by drafting a letter of intent. This document outlines your wishes, plans, and expectations regarding the funds you save for your niece. It can include details such as the intended purpose of the money (education, home purchase, etc.), the estimated amount you plan to save, and any additional instructions or desires you have. By creating a letter of intent, you can provide guidance to family members or individuals involved in supporting and managing your niece’s financial situation.
7. Exploring Alternative Identification Methods:
If your goal is to pursue avenues requiring the SSN, consider researching alternative identification methods accepted by financial institutions or organizations. Some entities may allow the use of alternative documents, such as a birth certificate or another form of government-issued identification, in place of the SSN. Reach out to relevant institutions, explaining your situation, in hopes of finding solutions that align with your saving objectives.
8. Encouraging Family Participation:
Saving for your niece’s future can be a collaborative effort involving family members. Encourage immediate family, such as parents or grandparents, to explore the various financial options mentioned above and determine if they have the necessary documentation to initiate any savings plans that require an SSN. By fostering a collective understanding of the importance of saving for your niece’s future, you may find a solution among family members who have access to the SSN or appropriate identification documents.
9. Monitoring the Legal Landscape:
Laws and regulations regarding identification requirements and financial accounts can change over time, affected by factors such as advancements in technology and evolving privacy concerns. Stay updated on legislative developments that may impact how financial institutions handle situations where the SSN is unavail…
unless you are planning on saving up a tremendous amount of money (like 6 figures+), just save in your own accounts, and sometime in the future, gift your niece the money.
Why do you want it to be in her name? You can simply save in your own accounts and eventually gift it to her.
you can hold the money yourself and give it to her later. Go open up a separate account in your own name. It sounds like you have the discipline the mom doesn’t.
A custodial account would be ideal, but my understanding is a custodial account (like an UGMA or UTMA) requires an SSN.
If the parents don’t want to give you the info, there’s really not much you can do. It seems like they do not want you gifting money in that manner.
I have a 529 called “Ava” with Fidelity. I don’t think you need the SSN to open it, technically I can change it to “Beyonce” if I want
This would give you the option to print a statement with her name on it. The money would need to be used for college/education expenses. To be clear, you’ll need to declare her as the beneficiary once she’s college aged
So, don’t bother overthinking this. Just open an account in your name and put her savings in there.
If you try open an account with her SSN there is a chance her legal guardians could access it under the pretext of needing the money for her.
Hey OP. I did something similar but didn’t create a custodial account. I just opened up another savings account on Ally (high interest) and named it after my nephew. Added him as a beneficiary. Works fine. I’ll send him screenshots of the account balance every now and then.
Any chance you can sneak a peek at their taxes? It’ll list her SSN
How old is she does she know her own SSN?
She has it on taxes, guaranteed. She just wants you to keep sending the checks.
I also wouldn’t tell her mom you even have an account for her. She might pressure her daughter to give it to her as “rent”. Or tell her to ask her rich uncle if she needs more money
I mean, you can just … save the money and give it to her one day. Why does it need to be in her name for you to save money for her?
People really overcomplicate this. Sometimes the over-complications are worthwhile, but often times, not really.
Also, with it being in her name, you’re potentially messing up things like FAFSA or need based grants and what not.
Two options:
1) just open a savings or investment account under your own name and gift her the money when it’s time.
2) if you want it to be specifically an educational fund, you can open a 529 for yourself and then change the beneficiary to her when she is a legal adult and will hopefully have access to her own SSN. This would let you get the tax free growth and whatever state income tax benefits your state offers. This would be problematic if her parents or grandparents were likely to save over 450,000 for her, but given the story it seems unlikely.
Some people don’t like custodial accounts for their kids bc it can negatively impact their ability to get financial aid in the future. Since her parents were against the UTMA, I established an account for my niece, but in my name, that will go to her once she is 18. Her mom has the ability to log in and see the account’s growth and has sent me $ to add to it.
My thoughts are for you to open a trust and add her as a trustee when she is older, then you dont run into a lot of the tax issues that can come up when you give people money.
You used to be able to buy savings bonds for a child without a ssn. It was a common gift from a grandparent. Now that they have mostly done away with paper bonds you would either need to do it with tax refund money (I did notice a year or so ago you can have them issued in any name} or see if you can get the electronic ones tittled this way at treasury direct.
Any bank account that does not require an ssn would be an account that does not pay interest.
edit: did a bit of reading and seems the treasury direct site does not support this as only the parent / guardian, main financial supporter can do this now and it requires an ssn.
At least one of UTMA/UTGA accounts have irrevocable contributions that only the beneficiary can withdraw. I think 529 accounts may have the same restriction.
My brother is the same as your sister. He would spend any money I have him. I have a aieper ate savings account in my name that I put money in weekly. My nephew will get it when he’s 18. It won’t pay for college, but he’ll be able to buy a car at least.
529 plan. You own the account and name her beneficiary.
You can also make her the beneficiary of the account you open for her.
Reading through here OP, you seem very hardheaded. Ppl are giving you great ideas yet you keep insisting that she “needs” the account. Why ask for help when you don’t want it? She doesn’t need it, you want it for her.
open something like a serve account and get your niece a card on the account. I got one for my 10 year old kid and I transfer money to her and downloaded the Serve app on her phone so she can check her balance. I can send / reclaim money at any time. But it’s less responsibility than a real account
Don’t put it into the niece’s name. When the time comes, cut a check for expenses or whatever. Don’t give the parents access to more of her money somehow.
Any money your niece has in a savings account in her name will count against her receiving college financial aid. Please just save money to gift to her later when needed. You can even make tuition payment directly after any aid is applied. Give your niece actual gifts for her bday/Christmas and let her know you’ll be there for her when it’s time for college. That it’s her job to do well in school so she can get the opportunity in the first place.
Make an account and make the niece the beneficiary.
You might even be able to add clauses to make sure the MOTHER cannot get access, no matter what happens.
Without the SSN, you have zero chance of actually creating an account in your niece’s name for your niece. That would be called identity theft or something.