Child Trust Fund - parents have spent

claireS_2

I’m looking for a bit of advice. My nephew was born during the time of the Child Trust Fund which was set up for him automatically. He had the initial money and this is also where various family contributions were stored over the years for his future. This included bequests from the wills of both my parents.

My nephew has just turned 18 and we have discovered that his account is empty as the money has been spent by his parents. Relevant backstory - his parents split 8 years ago whilst living abroad. His mother retained custody but had very little in the way of her own funds. It seems she used her son’s money to help relocate back to the UK with the promise to replenish funds. However no attempt has been made to do this and money that was put away by all of us for his future (c. £10,000) has disappeared. It’s also worth noting that his mother has had help from our family over relocation and living costs over the years including direct financial support and rent free living so there were opportunities for her to save. There was no formal financial agreement with the father and he continues to live abroad and offers limited financial help. It is him we are actually related to.

I really feel for my nephew who has had his plans for further education disrupted now that the funds are not there but I’m also angry that money we have saved in the account for him is gone. As executor of the wills of both parents I feel some responsibility to ensure he receives his legacies in accordance with their wishes. On the other hand I can see that the money was used (at least in part) for his benefit in helping them settle here. 

I’m not sure what I’m looking for and I certainly don’t want to start any arguments but I wonder whether it’s legal for a parent to drain the fund like this? The money was specifically for my nephew and there appears no way to get it back. Does anyone have any experience of this?

pramsay13

Money can't be withdrawn from a child trust fund except in exceptional circumstances such as terminal illness so you probably need to double check what has actually happened, but if it's gone your only way of getting some back would be from the mother, but as you say it was used to benefit the child at the time. 

gelato_cat

When did she withdraw the money?  The money can only be withdrawn on or after the child's 18th birthday and you say he has only just turned 18.

claireS_2

Thanks both. I thought that it was the case that it couldn’t be withdrawn which was one thing that caused alarm bells. It’s definitely all gone so I don’t know what’s happened. It was withdrawn around the time they moved here as far as I know so child would have been 10/11.

Eldi_Dos

Could the money have been transferred to a Junior ISA at that time?

LinLui

To be fair, £10k is very litttle money over 10 years and if it's the father you are all related to, perhaps you should be pointing out that he was supposed to step up and support his child? As you say, he lives abroad and has provided limited support. Instead of seeking to blame the mother for this, perhaps you should be looking at your relatives (previous and ongoing) lack of support for their child. Here's an idea - he could step up to securte his own childs future instead of expecting everyone else to do it for him.

Tucosalamanca

Withdrawals from a JISA are prohibited before eighteenth birthday.
The only way that the money has been spent is if it was never paid into a CTF (or JISA) in the first place.
Perhaps more investigation is needed, maybe the funds were paid into some other type of account?

xylophone

I’m looking for a bit of advice. My nephew was born during the time of the Child Trust Fund which was set up for him automatically. He had the initial money and this is also where various family contributions were stored over the years for his future. 

The CTF/JISA can be accessed only by the child when he reaches the age of 18.

Are you suggesting that the registered contact (parent) has fraudulently accessed the account by pretending to be the child?

p00hsticks

claireAs executor of the wills of both parents I feel some responsibility to ensure he receives his legacies in accordance with their wishes. 

I may be mistaken, but I was under the impression that (in England & Wales at least) legacies left to minors are supposed to be placed into a trust until the beneficary turned 18 ?

Johnny-Cage

Sounds very sus to me

marcia_

p00hsticks said:

claireAs executor of the wills of both parents I feel some responsibility to ensure he receives his legacies in accordance with their wishes. 

I may be mistaken, but I was under the impression that (in England & Wales at least) legacies left to minors are supposed to be placed into a trust until the beneficary turned 18 ?

 Not unless the will stipulates this