Stolen Inheritance through legal loop hole

Valone

Hi,
I'm new here and didn't know where else to seek advice.

I think I've discovered a 'legal' way of stealing a child's inheritance.

My two children from my previous marriage were left cheques for £3.5k & £2.5k when their paternal grandmother sadly passed away earlier this year.
Their father lives 130 miles away from where I moved with the children and was given a cheque each, made out in my children's full names, and opened bank accounts for them in his home town. He opened 'trust' accounts with him having sole access to the cash.
We have learnt today that both bank accounts have been emptied (history repeating itself as this is why I divorced him and moved away).
Can this be legal? The children weren't present when the accounts were opened (they are 14 & 15 years old) and he simply had their birth certificates. There was no will leaving the money in 'trust' simply cheques made out in their names.
Any advice or is it a case of the children just accepting that their father is lower than low?

Many thanks,
Valone

jonesMUFCforever

By trust do you mean he was the adult with signing responsibility on the accounts?
If so legally he has done nothing illegal.
The account would have been open with a birth certificate (sufficient ID for a child) the cheque deposited and withdrawn when cleared.

I agree with your quote that he seems to be the lowest of the low.

What can you do? Write a letter before action asking what he has spent the money on - if you get a reply you are not happy with or no reply consider legal action. Take care as this will cost you more money with no guarantee of success.

Valone

Many thanks for your reply. Yes, he had signing responsibilities,

It just seems bizarre that cheques made out personally, can be cashed and withdrawn so easily.

They are at a young age to discover such unsavoury characteristics of someone they previously idolised - not much idolising going on this evening for them 😔

Shakin_Steve

What a low life. Unfortunately, I can’t see that he’s done anything illegal. Of course, it’s morally reprehensible, but not against the law.
I opened a similar account for my son in 2001, all I needed was his birth certificate. Even though he is now 18, and there is a considerable amount of money in there, he wants me to keep running the account as his trustee so he can get the 1.5% interest. I don’t have to put it in his name till he’s 21. In September I withdrew £1000 from it to go towards his rent at university. The teller said to me “As this is such a large amount, I have to ask if it’s for the benefit of the child”. I answered yes and she handed over the cash.
If I wanted to be a complete b***ard, I could empty it. All his birthday money, the money his Nan and uncles gave him, his pocket money he saved........gone! And perfectly legal.

glentoran99

how can this be legal in anyway? The money was left to the Children, regardless of the bank accounts cashing and withdrawing the money may have been legal but spending the money left to the children not to the benefit of the children has to be illegal

Shakin_Steve

I think I’m right in saying that, as the sole trustee, he can more or less do what he likes. It would certainly be a long, drawn-out, expensive road through the courts, with little chance of success.

Valone

Yes, the bank advised me contacting a solicitor but I couldn't afford it.

Their dad is currently saying:

A) "I mixed up my bank card with their bank card"
"I wanted to protect their money so I moved it to secret account ( hmmm - apparently in £10, £20, £50, £150 & £250 withdrawals from various cash machines through his home town"?

It just isn't right and feeling this powerless is awful....

Thrugelmir

Valone wrote: »

Hi,
I think I've discovered a 'legal' way of stealing a child's inheritance.

Only in the extreme circumstances as you describe. The executors of the estate should have taken more care rather than simply sending cheques payable to the children. .

PeacefulWaters

While his operation of the accounts isn't likely to be against the bank's terms and conditions this is patently an act of theft.

Involve the police.

xylophone

He opened accounts in the names of the children.

In effect he was "bare trustee". The money belonged to the children.


As Trustee he was able to control the accounts.

He has withdrawn money from the accounts.

If he has spent this money on himself rather than for the benefit of the children he has taken their money.

This is an abuse of trust.

https://www.google.co.uk/search?q=trustee+stealing+from+bare+trust&oq=trustee+stealing+from+bare+trust&aqs=chrome..69i57.22081j1j8&sourceid=chrome&ie=UTF-8

Q My ex has taken my children's savings. Can I do anything about it?

I got this tweet from a mother last week. It turns out to be £15,000 of their savings; the dad's absconded and has no contact.
If the money is in a child's name, it's their cash. However, for younger children the usual practice is to nominate a signatory (for example a parent or grandparent) who can manage and withdraw the cash without the child's approval, usually until the child is 16 – though some accounts let you give the child control earlier.
So for younger children it's quite easy for parents to use their cash; for older ones, you would need their permission.
As for whether it is legal to do so, I've consulted lawyers who, as is often the case, had mixed views. Some say it is criminal fraud, others say there's nothing in practice to stop it – though you could attempt a civil suit for breach of fiduciary responsibility.

Valone

The bank said the police wouldn't want to know but I do have a friend who is an officer and I'm going to see him tomorrow - thanks (until I joined this site I thought I was wrong - clearly I'm not)