Savings Account Fiasco

[interested.user]

A friend of mine has a child with a woman. They are not together, and are very unfriendly to each other.

Recently, the mother's friend (the godfather) gave my friend a check for several hundred dollars for the child's college savings. The check's memo said "For College Savings." My friend and the godfather are acquaintances, but only know each other through the mother.

The check was made out to the child. My friend opened a college savings account at his local credit union and deposited the check. The account is in the child's name and my friend is listed as the guardian. The mother's name is not listed on the account.

The mother recently demanded that my friend give her the amount of the check, saying that my friend is not authorized to open such an account. If he doesn't, she will take my friend to court.

My question is - What will the outcome of this case be if it goes to court? The check was made out to the child with the intent of it being for the child's college savings. It was put into a college savings account. Does the fact that the godfather is better friends with the mother make a difference?

The whole reason that my friend did not add the mother's name is that she is not financially stable, and he fears that she will use the money for herself.

Thanks for any advice.

 

[LdiJ]

A friend of mine has a child with a woman. They are not together, and are very unfriendly to each other.

Recently, the mother's friend (the godfather) gave my friend a check for several hundred dollars for the child's college savings. The check's memo said "For College Savings." My friend and the godfather are acquaintances, but only know each other through the mother.

The check was made out to the child. My friend opened a college savings account at his local credit union and deposited the check. The account is in the child's name and my friend is listed as the guardian. The mother's name is not listed on the account.

The mother recently demanded that my friend give her the amount of the check, saying that my friend is not authorized to open such an account. If he doesn't, she will take my friend to court.

My question is - What will the outcome of this case be if it goes to court? The check was made out to the child with the intent of it being for the child's college savings. It was put into a college savings account. Does the fact that the godfather is better friends with the mother make a difference?

The whole reason that my friend did not add the mother's name is that she is not financially stable, and he fears that she will use the money for herself.

Thanks for any advice.

I think that mom is blowing smoke.

 

[Ohiogal]

But a savings account is NOT a college savings account. Your friend should open a 529 account for the child and deposit the amount in there.

 

[interested.user]

But a savings account is NOT a college savings account. Your friend should open a 529 account for the child and deposit the amount in there.

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The check was made out to the child with the intent of it being for the child's college savings. It was put into a college savings account.

 

[LdiJ]

But a savings account is NOT a college savings account. Your friend should open a 529 account for the child and deposit the amount in there.

Sometimes you have to be careful about 529 accounts. While savings accounts are paying little in interest these days sometimes 529 accounts earn just as little plus have brokerage type annual fees that actually make the earnings negative.

 

[justalayman]

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but was it a formal legally recognized college savings account?

I had a college savings account when I was young. Parents and relatives put money in it to help pay the costs of college. It was nothing more than a regular savings account that was designated by myself as a college savings account but in reality, it was simply a savings account.