SLARRY[at]weizmann.weizmann.ac.il (Larry Israel) wrote:

- quote -

If you do just what you say, open an account "Larry Israel
in trust for child," then the money is yours to do with what
you please until you die.

If what you really mean is you're opening a Uniform
Transfers to Minor's Act (UTMA) account, then any money that
goes in belongs to the child.

Paul

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Larry Israel wrote:

- quote -

You can open the account with the child as beneficiary, in
which case, it's not his money, it's yours till you die.

You can (for a fee, not cheap) set up a trust, which, if
revocable, is not a completed gift and remains your money.
If you create an irrevocable trust, the money is no longer
yours. depending how the trust is worded, the child may have
limited access, or may receive a small percentage each year.

I suspect you are looking to set up a custodial account
(UGMA/UTMA). Indeed, if you try to take the money back, not
for the benefit of the child, you are 'stealing'. You are
best off not doing this unless you are certain you want to
pass the money along.

See http://www.fairmark.com/custacct/ for some light reading
on the topic.

JOE

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"Larry Israel" <VSLARRY[at]weizmann.weizmann.ac.il> wrote

- quote -

Yes.

- quote -

There can be, yes.

If you don't intend to gift your child the money, keep it
for yourself.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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VSLARRY[at]weizmann.weizmann.ac.il (Larry Israel) writes:

- quote -

This should really go in misc.legal.moderated.

But in any case, if this is a plain old bank account
registered as "John Doe Payable on Death to Richard Roe"
or "John Doe in trust for Richard Roe", then Roe has no
claim on the money. Doe can use the money as he sees fit
and can remove Roe from the account registration.

But if there is an actual trust (with a trust document,
etc). and the account is registered in the name of that
trust, then the terms of the trust control what can be done
with money in the account.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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Larry Israel wrote:

- quote -

The money is not "his", but it is in trust for him. Because
you are then a trustee, if you do something with the money
that does not benefit the child, you have breached your
fiduciary duty to your child as beneficiary of the trust.
Whether your child would actually sue you for a breach of
trust, however, is a question that depends on your personal
family dynamics.

If your child has any creditors at the time of the breach,
you might open yourself up to claims by the creditors--that
would probably be a more serious problem for you.

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VSLARRY[at]weizmann.weizmann.ac.il (Larry Israel) wrote:

- quote -

It depends on what you mean by "for a child." Once you make
a gift it belongs to the child and not to you, so you can't
legally take it back later.

If a trust is revocable, you are the primary beneficiary and
your child is a contingent beneficiary who receives his
portion either when you wish or when you die, it does not
"belong" to him so you can take it back.

But if you set up a trust (including a Uniform Gift [or
Transfers] to Minors Act trust) which states that the
property belongs to the child, it's his and not yours.

This is actually a very complex and intricate part of the
law. Don't even think of getting involved in this kind of
thing without competent legal assistance.

Stu

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"Larry Israel" <VSLARRY[at]weizmann.weizmann.ac.il> wrote:

- quote -

Yes and yes.

--
Phil Marti
Clarksburg, MD

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I don't know what group is appropriate for this question, so
I am trying it here. If I open a bank account in trust for a
child, is the money his? That is to say, if I later decide
to use that money for myself is there a valid claim that I
misused his money?

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