Giving out your bank account information . . . hmmmmm
By much2say
@much2say (55608)
Los Angeles, California
November 17, 2023 4:59pm CST
My sister created a 529 plan (a trust) for my kids' education. Now she wants to transfer the funds to my daughter as she is attending college.
She has asked for my daughter's bank account and routing number - and long time ago she once asked for her social security number. That does NOT sit right for me - not that I don't trust her, but that sounds awfully strange.
So we went to my daughter's bank and asked her sort of mentor there - plus the manager - who also asked the financial person above her. They even thought there were some red flags there. They told us the safest way to transfer the money was for that institution to send my daughter a physical check . . . my daughter should not have to give anyone her personal bank information ... that if they can deposit directly there, then may easily withdraw from it too 
.
Next I will be asking the college financial office for their opinion on the matter.
Do you have personal experience with 529 plans for higher education? Does it sound weird to give out bank account information to another institution like this?
.
Next I will be asking the college financial office for their opinion on the matter.
Do you have personal experience with 529 plans for higher education? Does it sound weird to give out bank account information to another institution like this?
21 people like this
23 responses
@changjiangzhibin89 (16764)
• China
18 Nov 23
I have no idea of what 529 plans is.There must be a catch in asking for your daughter's bank account .
3 people like this
@much2say (55608)
• Los Angeles, California
19 Nov 23
It is an investment trust plan geared towards education (for tuition, supplies, etc). My sister created this account years ago for my kids so they could have some funds to help when they enter college. It is a nice gesture for her have gifted this, however it has put us in some awkward situations regarding taxes, and this huge privacy issue. I am already stressed about my sister's ways . . . and now this.
2 people like this
@much2say (55608)
• Los Angeles, California
25 Nov
@changjiangzhibin89 Right. The intention is good, but we have to ensure the process is safe and secure for my daughter so as not to compromise her financial accounts. We are still looking into the matter and trying to figure out the best way to handle this.
1 person likes this
@changjiangzhibin89 (16764)
• China
20 Nov 23
@much2say Even though your sister's heart is in the right place,but you have to inquire into the 529 plan ,know the ins and outs of it, in case you could be taken in.
1 person likes this
@much2say (55608)
• Los Angeles, California
19 Nov 23
I still need to get some professional advice and fast. My sister isn't thinking about security here . . . I just need to get my information straight so I can pass solid info to her. It's not that we are not grateful . . . it's just that this is another awkward position my sister puts us in - she makes things complicated and stressful.
2 people like this
@celticeagle (166976)
• Boise, Idaho
18 Nov 23
It's good you are taking these steps. I think it's all about boundaries. It's very nice that your sister is doing this but, it should be done in a way that your daughter is being safeguarded. I've never had any experience with 529 plans.
3 people like this
@celticeagle (166976)
• Boise, Idaho
19 Nov 23
@much2say ........I'd be setting up some strong boundaries.
1 person likes this
@much2say (55608)
• Los Angeles, California
19 Nov 23
Boundaries - yes! I completely agree with you here. Right - we are grateful, but we cannot compromise security. I need to get solid information on this - it's one stress after another with my sister - we seem to always be put in an awkward position with her.
2 people like this
@much2say (55608)
• Los Angeles, California
19 Nov 23
Something just doesn't sound right. I just can't believe my sister puts us in this position . . . she should know not to ask a "kid" to simply give out personal bank numbers - especially to an institution we know nothing about (and is in another state). I need to get professional advice - my gut feeling isn't sitting well with this.
2 people like this
@RebeccasFarm (89882)
• Arvada, Colorado
18 Nov 23
I do not have experience with 529 but reading this Much, you are right to question this.
Remember what we were talking about ?? My sis and yours..omg no..I would never in my case anyway.
Just sayin
I used to trust too..and look what happened..shocking.
I guess you will find the answer I hope..the correct one..it just doesn't sound right.
I used to trust too..and look what happened..shocking.
I guess you will find the answer I hope..the correct one..it just doesn't sound right.3 people like this
@much2say (55608)
• Los Angeles, California
18 Nov 23
I know, I know!! I really hate that we are put through these sib stresses - makes me ill. In all honesty, we don't even want this 529 - don't want to feel like we owe my sister anything. But it was created as a gift . . . still something doesn't seem secure. Anything good is made complicated and stressful by her . . . I am tired . . . so tired!
2 people like this
@much2say (55608)
• Los Angeles, California
19 Nov 23
@RebeccasFarm Exactly. It feels like these stresses are never ending . For me it still keeps on coming - I hate it. My mom tells me to ignore her - in one ear and out the other - but it's not so easy as that. Yah, will let you know .
. For me it still keeps on coming - I hate it. My mom tells me to ignore her - in one ear and out the other - but it's not so easy as that. Yah, will let you know .2 people like this
@RebeccasFarm (89882)
• Arvada, Colorado
18 Nov 23
@much2say Yes a big stressor, I understand..why we ask why does it always have to be this way.. So sorry..I know the feeling of exhaustion ..let us know what you decide.
2 people like this
@snowy22315 (180757)
• United States
20 Nov 23
Not personally, as my son refused to go to college, although he did end up taking a few classes at the local community college. I think sis used a 529 plan for her boys but I had nothing to do with that.
2 people like this
@snowy22315 (180757)
• United States
20 Nov 23
@much2say Yeah, not sure I am into that gap year thing.
1 person likes this
@much2say (55608)
• Los Angeles, California
20 Nov 23
I'm going to hopefully get some help on this later this morning. I've often thought college wasn't for everyone, but as independent adults they do need to keep productive somehow. My daughter wanted to initially take time off but she had a summer of being a couch potato (well, a bed potato) .. . there was no way we were going to allow that to continue. Anyway, now she realizes this was the best thing for her.
1 person likes this
@infatuatedbby (94914)
• United States
10 Apr
I have never heard of this plan before but how come she doesn't give a personal check to your daughter and your daughter then puts it in her account? Or perhaps you could put it in a high yields savings account or something of that nature instead that way there is no strings attached with your sister. I wouldn't give social security information either.
1 person likes this
@much2say (55608)
• Los Angeles, California
14 Apr
It ended up my sister did nothing. She told my daughter she was going to bring her laptop and take care of this at the Thanksgiving gathering (that's why I was scrambling at the time posted) - but after all that, she didn't (and still has said nothing). A tax guy (and the college) said usually a check is made out directly to the college and that is the best proof that it went towards education - no gray area - but we have not been able to tell her since she is not talking to us 
.
.1 person likes this
@much2say (55608)
• Los Angeles, California
17 Apr
@infatuatedbby It's sucks - and she is not one to ever apologize - so we'll see where this goes .
.@infatuatedbby (94914)
• United States
14 Apr
@much2say Kind of expected 
Sorry to hear you're dealing with sister drama. Hopefully one day she'll realize ...
Sorry to hear you're dealing with sister drama. Hopefully one day she'll realize ...1 person likes this
@wiLLmaH (8802)
• Singapore, Singapore
22 Nov 23
It's understandable that you would have concerns about providing personal financial information, such as bank account details and social security numbers. It's good that you sought advice from the bank and are planning to consult with the college financial office.
1 person likes this
more than 4 years and I am back here in myLot.
I hope the information you've gathered so far has been helpful.
@much2say (55608)
• Los Angeles, California
19 Nov 23
A physical deposit would be good and is preferred by us, but I know the electronic way would be faster - I just know my sister is going to put up a stink about all this. She seems to always manage to put us in an awkward position - she stresses me out. I need to get professional advice asap so I can make my arguments. Yep - the stolen checks happen here too, though it hasn't happened to us personally.
1 person likes this
@noni1959 (10095)
• United States
20 Nov 23
You sister may have spoken to someone that ill advised her. She should get a cashiers check and send it to her to deposit. Some banks have where you can hook someone to you but not on your account in order to transfer funds but only if they have the same bank.
2 people like this
@much2say (55608)
• Los Angeles, California
20 Nov 23
Cashier's check - yes, that sounds logical to me! We don't know anything about the institution she used for this plan - except that it's in another state too - which makes us feel even less secure. I'm going to get some help today, hopefully, from a couple places who can tell me the proper process of transfer . . . and then I can relay the facts to my sister.
1 person likes this
@much2say (55608)
• Los Angeles, California
25 Nov
@noni1959 My daughter is just learning about handling these financial things - so we have to show her to be extra cautious about these things. I hate that my sister puts us in this position, but well, she does not have kids so perhaps she doesn't "get it". The bank ended up saying exactly as you said 
.
.1 person likes this
@aninditasen (16395)
• Raurkela, India
18 Nov 23
I had given out my bank details to a fraud but my son blocked my account in time and my money was saved..
2 people like this
@much2say (55608)
• Los Angeles, California
20 Nov 23
@aninditasen This is why I will get some professional help on this today. We cannot afford to make such a mistake - it would be extremely bad.
@aninditasen (16395)
• Raurkela, India
20 Nov 23
@much2say Yes, the authority won't take any responsibility as they often warn us not to give our bank details to anyone.
1 person likes this
@MarieCoyle (37525)
•
20 Nov 23
There is just no way I would want to give out that information. I do have my son's banking info here, but I am on his account in case he is too ill to do whatever needs to be done. I am glad the bank manager agreed with you!
2 people like this
@much2say (55608)
• Los Angeles, California
20 Nov 23
It doesn't seem right for sure. We know nothing about the institution she used - plus it's in another state none of us including my sister ever go to. Today I'll be hopefully get some information from the college financial office and maybe our own bank . . . I need facts on what the proper procedure is for this. It makes sense how and why you have your son's info . . . in our case, even my sister shouldn't have knowledge of my daughter's info.
1 person likes this
@much2say (55608)
• Los Angeles, California
25 Nov
@MarieCoyle It is a bit sticky . . . my sister gets defensive real easily when things don't go her way - she might get dismissive about what others say, even if they are professionals. At the same time we don't want to sound ungrateful about such a gift - but then we don't want a headache over it and most of all do not want my daughter's account compromised. Still trying to get definite answers on what would be best - you're right it's just too easy to get hacked .
.1 person likes this
@MarieCoyle (37525)
•
20 Nov 23
@much2say
It's easy enough to get hacked nowadays without increasing the chances of it happening, anyway. Maybe you can tell her that the bank did not recommend that you share it? What a hard thing to try to work around!
1 person likes this
@much2say (55608)
• Los Angeles, California
25 Nov
All our kids' lives we tell them to keep such information private and not to give them to anyone . . . keep it completely secure. And just because my sister is the aunt doesn't mean she should freely be given that kind of information. Maybe it's because she doesn't have kids herself, she just doesn't get that.
1 person likes this
@Marilynda1225 (82799)
• United States
29 Nov
I would be skeptical too with those "red flags" and would consider what the bank suggested. Can't be too careful these days.
1 person likes this
@much2say (55608)
• Los Angeles, California
1 Dec
Exactly. If a financial institution is telling us these things, then we should surely listen. One bank person says it would be ok - that this is the way things are done now and that it should be ok as long we trust the family member. Yah, but it's not the family member I'm worried about .
.
@Missmwngi (12915)
• Nairobi, Kenya
20 Nov 23
Well,cif the bank manager thinks otherwise then that's sure a red flag.
1 person likes this
@much2say (55608)
• Los Angeles, California
25 Nov
@Missmwngi Well, I got more information, but not too many definitive answers. But I'm going to continue asking others who might understand this dilemma!
@LindaOHio (178701)
• United States
18 Nov 23
I'm not familiar with a 529. I'm glad you did some checking. Have a great weekend.
1 person likes this
