grandparent keeping child's money

istanbul09

but if she was a trustee surely it is a breach of trust?

Sommer43

Any bank or building society will not impart this information to you unless you have the accounts in your name also. As in joint.

Placing money in a children's account involves a named trustee. If your mother is the named trustee, then it is up to her when the money is handed over. She can move the money to her own account, she can draw on it and use it as she likes. Because she has told you it is for the children does not mean the children will automatically receive it. She can change her mind at anytime. No obligation whatsoever to hand it over.

Macca83_2

The bank is not going to give you any account information. End of. I would just forget about it. I think by pursuing it you will only exacerbate the problem.

istanbul09

just seems so wrong and I cannot get my head around why a trustee,if she was one, is not under an obligation to pay the money to the beneficiaries- how can that be right?

Macca83_2

Only the trustee can withdraw money from the account. So yes it is legal for the grandmother to withdraw and close.

Kayalana99

Hiya I did a quick google and I think this might be of help to you;
Q:
Bank Account Trustee... withdrew my money without my permission?

I've been saving up for a number of years: birthdays, Christmas, gifts etc.... I put the money into a Child Savings Account to which my Mother was the Trustee (I'm 15, almost 16 now).

However, after acquiring a total of around £1000, there was a family feud which led to the money being taken out of the account by my Mother. I later returned, and without my knowledge, my Mum booked a holiday for me to go on with the money she withdrew and put into her account, without my permission.

I don't wish to go on this holiday, in fact, the money was extremely beneficial for me for when I planned on moving out.....my parents said that they took the money out of the account in case I did this, however I'm not planning not move out yet?!

The holiday is not paid for entirely yet, but I don't wish to go, especially if it's being paid for with this money.

What should I do?

A: Well, as trustee your Mum technically owns this money, not you (even though you may have put the money into the account. So she is perfectly within her rights to take money out. Legally, I'm afraid, you can't enter into a legal contract or ageement in your own right until you are 18.

However, being a trustee is a serious undertaking. The legal resposibility of any trustee is to manage the funds for the benefit of the beneficiary i.e. your Mum has to be able to demonstrate that she withdrew the money for your benefit.

The only way to legally challenge her actions is to take her to court and put a case together to the effect that she has embezzled the money. I would imagine this would be very difficult to prove and more expensive in legal fees than you have/had in your account.

Your only practical solution is to try and talk to your Mum and explain how you feel, how hard you have worked to save and that you didn't work that hard for her to fritter the money away on holidays that you don't want.

Last thing; open a new bank account and get another adult to act as the trustee.

Good luck.

Also info:
https://www.moneyadviceservice.org.uk/en/articles/being-a-trustee

Please bare in mind none of this matters if the account was in your mothers name to start with - then the money would be hers. Also you personally won't be able to get any information but if the account was in your kids names then they will be able to get information so take them with you to the bank with ID's

istanbul09

Thanks Kayalana- still open to more suggestions mother has refused on more than one occasion to hand the money over

Macca83_2

istanbul09 wrote: »

Thanks Kayalana- still open to more suggestions mother has refused on more than one occasion to hand the money over

how about you try and resolve the feud? Surely making amends is more important than the money?!

Sommer43

Macca83 wrote: »

Only the trustee can withdraw money from the account. So yes it is legal for the grandmother to withdraw and close.

Macca is correct.

OP, the title "trustee" is for the account holder unless another person has appointed her as trustee. If she opened the accounts for your children, she is free to put as little in as much as she likes.

You're thinking along the moral terms. The legal terms are very different. Your mother is at liberty to give the money to any person she wishes or, keep it for herself. It's her money.

fluffnutter

istanbul09 wrote: »

Thanks Kayalana- still open to more suggestions mother has refused on more than one occasion to hand the money over

'Hand the money over'. Is that how you ask for it? I'm not surprised she refuses.