My sister wants to divorce her husband.  They have a daughter who just turned 18.  The daughter has some money in a savings account.  The account is under both my nieces and sisters names because she was a minor when the account was established.  It’s quite a bit of money, my niece saved up her birthday money, babysitting, odd jobs and so on.  My sister is afraid her husband will try to take half of it in the divorce.  She wants to get a non-interest bearing checking account for her daughter. The account will be in her daughters name using her daughters social security number.  My sisters name wont be anywhere on the account.  She wants to transfer all the money into the new account and close the old one before starting the divorce.  My sister also wants me to be on the account as the beneficiary only.  She said by doing this, her soon to be ex, wont be able to touch any of the money.  Since their daughter is now an adult, he can’t touch her funds.  I’m not so sure about that.  Is this true?

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I would advise your niece to take care of this on her own. Since the money is hers there is no need for you nor your sister to be involved in the transferring/beneficiary process. The concern is that if your sister decides to turn this into a big ordeal she will make it appear as though she is trying to hide money from her soon to be ex. When in the end what is right is that it is the daughters money and hers alone. She needs to move it to her own account and claim sole responsibility over her assets.

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