Gift from grandmother

[johnxp]

My uncle passed away last year and he has one child who is now 17 years old. We have no relationship with my cousin or his mother. My grandmother, who lives in another country is interested in sending money to my cousin on a monthly basis (for example, $1000/a month, etc for a certain amount of time). I'm wondering, what's the best way to go about this so that we're protected and we ensure that the money gets to my cousin?

I was thinking about calling the mother and asking for a checking account and depositing money every month to that account. Is there a better way to do this?

Your thoughts and suggestions are greatly appreciated.

PS - this is not for child support (it's a gift from my grandmother to support my cousin) but I thought that this was the most related forum topic.

Thank you!

 

[LdiJ]

My uncle passed away last year and he has one child who is now 17 years old. We have no relationship with my cousin or his mother. My grandmother, who lives in another country is interested in sending money to my cousin on a monthly basis (for example, $1000/a month, etc for a certain amount of time). I'm wondering, what's the best way to go about this so that we're protected and we ensure that the money gets to my cousin?

I was thinking about calling the mother and asking for a checking account and depositing money every month to that account. Is there a better way to do this?

Your thoughts and suggestions are greatly appreciated.

PS - this is not for child support (it's a gift from my grandmother to support my cousin) but I thought that this was the most related forum topic.

Thank you!

Why do you need to be involved in this. Why cannot the grandmother handle this directly with the mother of the child?

 

[stealth2]

Why do you need to be involved in this. Why cannot the grandmother handle this directly with the mother of the child?

I'm going to assume that Grandma needs help with setting this up. Perhaps language barriers, etc.

 

[Zigner]

I'm going to assume that Grandma needs help with setting this up. Perhaps language barriers, etc.

Sure, but the same question would apply. The OP has "... no relationship with his cousin or his mother." The OP should suggest that grandma contact the mother of the child.

 

[not2cleverRed]

Sure, but the same question would apply. The OP has "... no relationship with his cousin or his mother." The OP should suggest that grandma contact the mother of the child.

Mom might not speak her ex's mother's language either.

My ex-MIL speaks very little English, and knows even less about our financial system.

$1,000 a month is a lot to "gift" a 17 year old. Is grandma's intention that this be put in a college savings account or trust?

 

[johnxp]

Yes - there's a language barrier and my grandmother lives in a country in which direct financial transaction with United States is sanctioned. She is also 90 years old. This money was gifted initially to my uncle (who passed away) for the purchase of his home as a gift from my grandmother and grandfather. When he passed away, my grandmother sold the house (it was always under her name). She wants to "gift" this amount slowly on a monthly basis to my cousin.The issue is that the family has no contact with this cousin and her family and we don't have a good relationship with them. That's what is tough because I'm dragged into this and want to assist my grandmother and at the same time I want to make sure that I'm protected.

 

[johnxp]

Mom might not speak her ex's mother's language either.

My ex-MIL speaks very little English, and knows even less about our financial system.

$1,000 a month is a lot to "gift" a 17 year old. Is grandma's intention that this be put in a college savings account or trust?

Also your response brings up an interesting line of thinking - my biggest worry is that this money will be used in bad/wrong way by my cousin (I really don't know much about her). Perhaps, it can be put into a trust/college savings account instead of directly deposited into a checking account.

 

[PayrollHRGuy]

So the money is already in the US?

Who has control of the funds in the US?

A trust that pays some monthly amount and can pay for college would seem like the best idea.

 

[LdiJ]

Yes - there's a language barrier and my grandmother lives in a country in which direct financial transaction with United States is sanctioned. She is also 90 years old. This money was gifted initially to my uncle (who passed away) for the purchase of his home as a gift from my grandmother and grandfather. When he passed away, my grandmother sold the house (it was always under her name). She wants to "gift" this amount slowly on a monthly basis to my cousin.The issue is that the family has no contact with this cousin and her family and we don't have a good relationship with them. That's what is tough because I'm dragged into this and want to assist my grandmother and at the same time I want to make sure that I'm protected.

What do you imagine that you need to be protected from? As long as you do with the money what your grandmother wants you to do, what liability do you imagine that you will have? Why does it matter how your cousin spends the money once it has been distributed to her? I think that you are perhaps over worrying the situation. However, your idea of a trust is not a horrible one. If you make someone else the trustee then you do not have to worry about any liability at all. You just set it up that she gets the $1000.00 a month until the money runs out and be done with it.