Real Life MMD: Do I have a right to my niece's money back?

joehoover

Unfortunately when I opened an account for my niece it cannot be done in their name without their parents authorisation, so they would have access to the account. I was doing this as a suprise for my brother so instead my sister took one out in her name as we didn't want to spoil this (and at the back of our minds knowing his financial troubles -deny him control aswell) I pay my sister money every month and she pays into the acount, I found out she had been taking the money herself though when she was a struggling student (What kind of family is this I hear you ask) She has since paid it back. But in response to the question posed, I would demand that money be paid back and would take all of the money back and set a new account up they have no access too, then you decide to give it to your niece when she is old enough. It is much easier for you to manage the account this way and even transfer to better savings acounts or ISA's. It makes no difference what they spent the money on the fact is this was not what it was intended for, they could have asked a family member for a loan for that instead. It is not their rainy day pot and is a smack in the face to your generous gesture. I only do a fiver a month, but maybe if they saved just a fiver too then they wouldn't need to raid their childs piggy bank so to speak. Though judging by the parents morals, the child will likely be pregnant at 14 and by the time the trust fund kicks in will have her third baby, the money will just be wasted on Happy Meals, you are better off keeping it for yourself and deciding what to do with it at the time.

antonia1

Perhaps the parents did ask their daughter? My parents struggled loads when I was growing up, and it would have made me far happier to be able to help them out than to keep some money for myself. As the gift was for your niece, ask her.

gaily

My only problem with the neice being asked, was that my family saved for me, but I never knew about it until I was being given it. My first car - I was given £1,000 savings from family that were to help towards it, but right up to that point, i'd calculated the extra £1,000 in the loan I was getting.

If I were saving for my niece she may not be aware of it, and the OP may not want her to know about it until they were to be given it. I wouldn't like the parents to have asked her, without mentioning it first.

jgriggle

It's stealing from their own daughter - pure and simple. Financial difficulty doesn't come into it.

Another way of phrasing the dilemma is "You are in financial difficulty and are struggling to pay the mortgage. It's your daughter's birthday soon and cards and presents have already started arriving. She's at school so doesn't know this. Do you sell the presents and open the cards and pocket any cash that you find?"

Fujiko

I'm afraid this seems a very unlikely scenario. I just don't understand how this account was supposed to work - being able to pay money in to an account is not the same as being able to access it, so presumably the parents must have been given authority to withdraw funds. I favour the suggestion that the niece should be told that there are at least x-pounds in an account, ie the amount the aunt has paid in over the years plus interest, which she can have when she is 18 - then stand back and await the reaction when the cupboard is found to be bare. The sooner she learns what dishonest parents she has the better. Anyone who can rob their own child is beneath contempt.

Mercedes_14

Ebenezer_Screwj wrote: »

Can I spell this out a bit more clearly. Nobody can draw money from somebody else's account by just being aware of the account number. It is an impossibility without gross negligence on the part of the bank. If however the parents have been made joint signatories to the account then they are entitled to draw money, irrespective of whose name the account is in. In this case, the account is in your name "re. the niece" until she reaches 18, when the onus is upon you to put the account into her own name. Your bank account has been mis-managed against your wishes by involving the parents.

Spot on!!
If the parents did not have 'legal' access to the account - regardless of who's name it's in - then it's fraud and you should take it up with the Bank / B'Society. If however, you knowingly gave the parents authorisation, then you need to diplomatically discuss your concerns with them. If you're now sure they're in a financial situation to repay the money, then surely they should be willing to pay the money back into their daughter's account, if not they've seriously abused your generosity and indeed their own daughter's 'gift'. In that case I'd tell them so and you'll have the moral highground for the rest of your lives!

Cerisa

this is straightforward stealing. You should set up another account they can't access and make them repay the money into that. Especially as they are allright for money now.

Pellyman

Can't really believe this THEFT has happened as described- it's despicable.

Too little detail as to the nature of the, now empty, account set up; so not really able to advise any course of action. However, I wouldn't hesitate explaining what has happened to the bank(?) involved and asking them what you could have done to prevent the theft. Depending on their response you might even have the opportunity to suggest you were improperly advised at the time of opening the account.

The account provider may also be able to advise on your possible avenues of recovery (on behalf of your niece), although as the thief is a family member you may have reservations about pursuing the matter fully. One thing I would do is assure the parents that, when she reaches the age of 18, you will tell your niece what happened - that should stop her having any delusions about her parents criminal tendencies and, hopefully, leave them feeling very uncomfortable in the meantime - but somehow I doubt it.

A very useful tale of woe for many of us to learn from - which is no consolation to you, but thanks anyway!

Nemesis201077

Hi,
in my opinion the person you gave the money too was the niece. regardless off financial difficulty this money is for her future, not the parents present.
If they had a genuine need perhaps they should have asked you whether you'd be okay for them to borrow the money rather than just take it, on the proviso it was repaid in full when they were more comfortable.
They owe the money taken to the niece, not to yourself. Perhaps next time setting up a more secure method of saving, such as a trust would be a better idea, where she is the only person who can access the money and only once she is 16/18 etc.

Stampede_2

Assuming the savings account was correctly set up - I say this because we had difficulties for an Grandchild who is resident overseas and couldn't do it - then on the face of it you and the children's Parents were effectively legal trustees of the money for the specific beneficiary - your niece.
A declaration of trust does not always have to be in writing, the formalities of trust depend upon the nature of the property and I suspect you have properly done it by having the pass book in the child name etc. Speak to the bank / building Society concerned and see what they say.
After that, leaving aside the serious legal offence that MIGHT have been committed it depends how you see the relationship with the Parents. I personally would probably be inclined to say something to them on the lines of 'well whilst I understand your difficulties that was xy's money and we need to talk about how you are going to replace it'. You personally are no more entitled to have the money refunded to you than the parents are entitled to steal it from their own child - once you had placed it into trust then it had to be applied for the beneficiaries benefit.