loophole? where?

the money you put into the child's account mostly likely is your income, so you've already paid tax on it. the only thing that might be a tax issue is the interest generated from those accounts. technically, these are your kids' income, not yours. but if that is the case, you have to file a tax return for your kids as well. and if you claim your kids as your dependents, then they can't use their own personal exemptions.

to conclude, yeah, maybe you can save a dime of income tax by putting your money into a bank account in your kids name. from the perspective of tax law, there is no "loophole" per se.

I am not sure what is the big deal on this.