Joint Investment Account with my Son

[mdunlap11]

FL My son received a settlement when he turned 18. We both agreed to invest the money and I his father would be joint on the account. We both have to sign for money to be withdrawn or moved. I did this so my son would not spend his money foolishly. Well that day has come and he wants all his money to move out and buy a car. I told him no....He said he would get his money anyway. Question: Can he get me removed from the account and get to his money? We went into this agreement to prevent exactly what is happening now.What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?

 

[tranquility]

It was always your son's money. Any "agreement" is not binding as there wasn't consideration in the first place and the purported agreement to hold money in this way would probably have to be in writing to be enforceable anyway.

But, there are a few problems that can be had for son. One, is the account format. If the bank allows the son to remove the money on his own, you can't really prevent him from doing so. But, if the bank requires both of your signatures, I don't think there would be a penalty for not signing--even if your signature was withheld unreasonably. Litigation over exactly what one had to do in such a situation would be pretty difficult and expensive. (Making it unlikely son could afford it.) But, at the end, he would probably get the money.

The second is the joint titling. Depending on the exact facts and purported agreements, there could be some compensation issues related to management of son's funds. Not only could that shift some actual ownership of some funds, but it could arguably be the thing you give up for consideration to make an agreement regarding the funds. Again, making litigation expensive and difficult thus reducing the likelihood of it being a realistic option. (Depending on the amount we're talking about.)

 

[mdunlap11]

So I guess you are saying I should just give him the money because it is going to be an expensive legal battle and in the end he will get it anyway? It's less that 50K. I'm not trying to withhold the money just help him spend it wisely. I appreciate your advice.

 

[Antigone*]

So I guess you are saying I should just give him the money because it is going to be an expensive legal battle and in the end he will get it anyway? It's less that 50K. I'm not trying to withhold the money just help him spend it wisely. I appreciate your advice.

Sometimes letting our kids grow up is the toughest task of all.

 

[Zigner]

I understand your concern (truly), but please understand that it is ultimately HIS money.

 

[tranquility]

My answer is that the money is the son's. At some point, through litigation, he will get it if the bank currently prevents him from access. Litigation is expensive and son is not going to want to do it, so he won't be able to force you to help him get the money.

I'd negotiate with him. It's a part of growing up.

 

[mdunlap11]

Thank you for all of your comments....They do help. All my son has to do is come talk to me and this could all be worked out. I don't want his money that I got him from my insurance company when he was hit by a car. But he does not want to face me because he has been stealing my credit cards and using them, so he can not face his father right now and apologize.....he would rather run.

Yes it is hard to let your kids make bad choices...So I will just sit back and see what happens. IF I get court papers in the mail I will deal with it then. I dont want this to become between us but it seems to have already taken it's toll.