Benefit Fund

What is the name of your state? Illinois
My families, out of the goodness of their hearts, have opened a bank account and asked family and friends to deposit "gift" money into this account. This money is to be used be my family for uncovered medical cost, travel, lodging and any additional expenses for my daughters up coming brain surgery out of state. The account has my daughters name along with the words benefit fund. I'm the account holder. Legally, how does this work? Can I just withdraw money to pay for her care and our travel expenses? Is this money concidered income to me? Do I pay taxes? We have a large family and this has really taken off. I'm worried that a large sum of money could be donated. We have agreed as a family to donate any remaining money to the pediatric brain tumor foundation. If the surgery doesn't go well, can this account and money be used to care for her down the road? Basically I'm grateful but worried about what my family has started. Any help is greatly appreciated. Thank you

The money is not income to you and doesn't affect the donors' taxes at all, unless some family member gave more than $11,000. You can do whatever you want with the money, since you did not set up any foundation documents or limitations on the uses of the money. However, the gifts do not qualify as charitable donations either.