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  1. #1
    beckio is offline Junior Member
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    Can parents take money from a child's trust fund?

    What is the name of your state (only U.S. law)? Missouri.

    We suspect that a couple in our family has taken the money from one or both of their childrens' trust funds . . . or is currently attempting to. They have even told the children (ages 15 and 17) that the trusts never existed. The trusts do indeed exist and were set up by their now-deceased grandfather. Is there anything these teens can do to protect their money?
    Last edited by beckio; 06-26-2009 at 03:09 AM.
  2. #2
    TinkerBelleLuvr is offline Senior Member
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    If chasing the money, request that copies of everything filed with the IRS be sent to them. Have it go to an address that is NOT controlled by mom or dad.

    If the trust exists and generated any monies, like interest or dividends, it would follow that the income has been reported to the IRS under the trust owner's social security number.
  3. #3
    curb1 is offline Senior Member
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    beckio,
    Who is the trustee of the trust?
  4. #4
    BlondiePB is offline Senior Member
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    Is this a revocable trust with the parents as the settlors?
  5. #5
    TrustUser is offline Senior Member
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    i dont think it could be. the trusts were set up by the grandfather of the kids.

    the parents of the kids are probably the trustee, but we need to wait to see for sure what the op says.
  6. #6
    BlondiePB is offline Senior Member
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    Thumbs up

    Quote Originally Posted by TrustUser View Post
    i dont think it could be. the trusts were set up by the grandfather of the kids.

    the parents of the kids are probably the trustee, but we need to wait to see for sure what the op says.
    I missed that...the grand part. Thank you.
  7. #7
    beckio is offline Junior Member
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    Thanks for everyone's input.

    The settlor is probably the step-grandmother (who is overseas at the moment). We are trying to locate her for more info.
    I would be surprised if the parents are settlors, given their history of greed and a falling-out with the grandparents.

    We do not even know if the trusts are revocable or irrevocable.
    We don't know if the children are entitled to the detailed information at their current ages.
  8. #8
    TrustUser is offline Senior Member
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    hi beckio,

    settlors are the person/people who actually created the trust. if the parents had done this, then there would be no connection to the grandparents.

    only the trustee is gonna be able to draw funds out of a bank, if the account was really set up as a trust account, from a trust document.

    hopefully one of the lawyers on-site will be able to help, with regard to you being able to see the trust document, so you can get informed about the trust.

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