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

jamespir

Costalot wrote: »

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.

how do you know she did not have a choice ?

John_Pierpoint

Because she is not 18 yet.

Though there are some 10 year olds who are savvy with money and some 28 year olds who are not.

It seems to me that the original donor did not designate the account correctly.

There was a similar discussion on here about a year ago where grandparent had died leaving money to grandchild and the parents/executors had stolen the capital.

When my daughter turned 18, I had the job of reorganising some National Savings, she had been given by her maternal grandparent, only to get into a muddle because her paternal grandparent had also done something similar, thus creating two identities for her at at two different addresses.

When I phoned NSI the response was "Ah grandparents - It happens all the time"

[That said I do remember my mother raiding my pocket money box because a man had turned up to cut off the gas:eek:]

skp

Why o why do these people never tell the full story and then expect to see what replies are going to be answered.If the person is building a nest egg why would you want the niece's parents to add to this account?when they should be opening one up themselves.

Cashwiselady

the solution here is very simple...ask for the money to be paid back by a set date (your choice whether with or without interest) and if they refuse/are unable - get them to explain to your niece what they have done and why - with you present.

dronid

Assuming that the relationship between you all is normally a good one, the issue here is that, for whatever reason, money allocated to your neice has been spent by her parents. Apparently this was due to unspecified (to us at least) money troubles. Those troubles are now resolved and her parents now have disposable income. I don't know how old the neice is and I don't know if she was old enough to be asked/agree for the loan of money from her to them.

My suggestions would be that the parents pay back the money to your neice (unless you have had a major falling out with her it's not her fault and she should not be peanalised for her parents actions) and continue the arrangement, with maybe a few alterations.

It is also worthwhile suggesting that they contact you if there are money issues in the future. Assuming they are serious ones that will have a detrimental effect on the family and your neice then maybe it would be appropriate for a loan of money, from whatever source. Ultimately it's about the well being of the family, ensuring they have enough to eat and a roof over their heads is vital. We were very poor once and my mother was very clear that everything in the house was an asset, including her jewelry, furniture etc and in the event of crisis there should be no sentimentality about it nor any 'that's mine'. It was about survival. I still remember one winter when we were burning old furniture as we were without any wood. At that point I would've happily offered up any money in trust etc to take the pressure off my mother somewhat. However, if the situation improved she would've paid it back.

MoneyMaLady

taxing wrote: »

Sorry but this sounds like a 'made up' problem just to spark debate.
Most on this thread seem so, too, but this one more glaringly so......

I genuinely wish it was.

Tempted to print all four pages out and show it to my sister . . . :T

rubytuesday

The money should be repaid to the niece - it was for her not the parents.

neilpost

A bit surprised no-one has mentioned Child Trust Fund here ?

...

assuming the child qualifies on date of birth since the changes.

idsworth

I assume account was in her name, and not subject to tax on interest.
If the account was held in trust and funds only able to be released on two signatures, yours and a parent, and the bank has released the funds without your signature, then you need to raise a complaint with that bank. They should reinstate the funds into the account, and under the same signatures for release. Data protection will not allow you to ask them their intentions with respect to parents, but safe to assume they will chase the money.
So, now what to do?
You can ask the parents nicely to sign for the funds to be released, you do the same, and niece gets her cash.
If that fails, you have no other way to get the money to the neice other than through the courts, and that is to seek a debt order, which judge will sign off and bank will then release.
Meanwhile, contact the Inland Revenue, show the interest gained on the account, that the parents have used a child tax free account for their own ends without paying any tax. You will get no response, but can hope that taxman will pursue. It will make you feel pretty good though!
Bon chance.

nickyd105

if it is just your name and your nieces name on the account, then the parents can not touch the money. but if the account is agreed with the bank that the money can not been given out to your niece until the age of 18, then it is only you that has access to the money.
otherwise they have commited a crime.