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

JayD

Well I can understand why you would be miffed but just how about you would go about getting anything back from them is beyond me. It is sad but I think you will just have to let the whole thing go.

We wanted to open an account for our granddaughter too but shied away from the idea when we found out that the only way to open it in her name involved giving her parents access to it - as her legal guardians they would have to authorise it. So we opened a separate, special one, just for her but in our name instead.

There has been a lot that has happened since our grand daughter was born. She is now 17 and a half, living in a hostel for battered children, estranged from her mother and a violent stepfather. So I am very glad we did what we did and retained control over those savings for her. To be honest, we are also thinking it might be wise to hold it back till she is a bit older than 18 now and find a time in her life when she is more settled and really needs it.

JayD

Just wanted to add that, if they are supportive, caring parents, then they will be repaying every penny they have had from that account and a lot more too in financial aid to their daughter over the coming years!

Lawsy

scotsbob wrote: »

If the family were in financial difficulties then that would affect your niece, the money would have benefited her as part of the family.

Furthermore, something given away is no longer yours to control. Lesson learned for the future perhaps.

...but it is not her nieces until she is 18, and you would think the family would ask before using the money which is clearly not theirs.

bebington

I do not know the details of your arrangement but if you had put the money in a designated account, that is in your name followed your niece's initials, then it would have been in a legally binding trust. You would have been both the donor and the trustee and you niece the beneficiary. The money would have belonged to your niece but she would not have been able to have access to it until she was 18. No-one else would have been able to withdraw the money and you would have been legally responsible for ensuring that the money was protected until such time as she required it after reaching the age of 18. If the above circumstances did prevail I would advise you to ask your bank or building society why they allowed your niece's parents to withdraw the money. If someone had stolen your account card and pin number and taken money from your account the bank or building society would replace the money. In this case I would advise you to ask the bank or building society to replace the money stolen from this account.

tallgirld

So basically they've nicked the money.

I would say to the niece "Look I put away X amount of money for you and your parents have nicked it."

They should pay back your niece not you.

oldnewhand

This doesn't quite add up, you've been paying into the account ever since she was born and yet you've just checked and it's empty. The implication is that the money was removed over a period of time as they were in financial difficulties but are now splashing the cash. I'm sorry but I do think you've been rather naive and nonchalant.
There is a moral obligation for them to repay the money to their daughter's account. I don't think there is a legal obligation if you gave them the all details they needed to withdraw the cash. If they had to tell porkies then they may well be guilty of fraud.
I think you should learn to be more careful and less trusting; not everyone has such a big heart as you. It would be good if you could open another account for the daughter which only you can access until she is 18 and let them know what you're doing. You could suggest that they did the same and hope that they will be shamed into following you example. Your niece probably needs all the help she can get if she has such financially immoral incompetent parents that steal their daughter's money. It's not worth having a big family fall out, trust is more important than money and you can lead by example.

John_Pierpoint

The only thing the parents should have been doing with this account, is claiming back the tax on the interest on behalf of their daughter and putting that refund into the account.

It might have been more sensible to have bought shares with the designation A/C [niece] thus making you officially the trustee for the niece; unfortunately it is nolonger possible to reclaim the tax (ACT) deducted from the dividends.

When the niece is 18 you could take your time getting around to transferring the shares into her name, if you thought she was still too immature to handle the capital, though legally speaking you should transfer the legal ownership to her on her 18th birthday.

Hopefully, with you guidance she will not grow up to be a retail therapy credit card junkie or worse.

jamespir

love how all the newbies are throwing the words fraud and theft round and are all disgusted lol


to the situation parents could not just get the money with the account details so you must have made them able to access funds
they used the money to help there business that was struggling now they've cleared the debts are flush so the niece i presume is benefiting from this new found wealth so in effect is getting her moneys worth

yes they could have asked you first but maybe at the time they were so worried it was the first thought it could even have been the nieces idea to help mum and dad out

Costalot

Regardless of how her parents have accessed the money this is still poor behaviour on their part, and she is not benefitting from it as she didn't have a CHOICE. I speak from experience with nieces and nephews who's parents have raided their bank accounts which held birthday money etc to pay bills. Consequently I do not give them money in any form. Personally I would open a new account and pay into that instead.
With regards to the money your neice has lost I suggest you try and speak to your sister. Prehaps if you explain that you were caught unawares because she didn't at least tell you at the time and why she borrowed (because she may have intended to pay her back) the money out of the account. Say you have set up another account and tell her if she wished to replace the money she is free to do so. I would take the long view that you want to be in contact with your neice on her 18th birthday so you can give her the rest of the money you intend to save on her behalf.

Lots of people have posted that if they really needed the money then it's ok. If the money was placed in a trust fund then they wouldn't have had access full stop. They should have regarded the account you set up the same way.

A.Jones

Either the giver or the bank is at fault here.

If you set the account up properly, with you as the trustee, then nobody else would have been able to remove money from the account. Others could pay money in, but not remove it. If the account was set up this way, and the parents have removed money, then first make a complaint at the bank, then take it to the financial ombudsman if they do not repay the money that they allowed to be withdrawn from your (as trustee) account.

If you have set up the account with other people as trustees, but you give them the money (or pay in the money directly), then it is not your account and you do not have the right to say how the money is spent. You have gifted the money to the trustees. In this case, you cannot complain how the money is spent, since it is no longer under your sole trust.

The parents may be at fault morally, but someone has allowed them access to money. Allow someone in financial problems access to money, and they will use it.