If a child suddenly has a lot of money, what steps can be taken to ensure that the guardian's don't exploit it

Question

Let's say the child wins a contest or just suddenly now has a lot of money, possibly just as much or even more than the parents typically make. Can a bank account be made solely for the child, with restrictions for the parents? There have been several cases that child actors have sued their parents as upon getting to a more mature age, they found out that their parents have been tampering with and exploiting their money behind their backs. How can one ensure that this will not happen?

I see what people are saying about a trust fund. However, why will guardians be able to touch it if they aren't the beneficiary or if they're only the beneficiary of say, 50%? Most funds have the condition of it being able to be released to the beneficiary when they, for example, 18 or 21. At this point, the guardians cannot do much about it?

Answer 1

two words...... TRUST ACCOUNT

You set up the trust for the child, and set up the BANK OFFICER as the trustee.. NOT the parents...It is easily done... and the parents dont have to know a darn thing.....

As for being the beneficiary.. that should NOT entitle the parents to collect anything unless the child dies before reaching the age of majority (18 in most cases). The child can name anyone they want as a beneficiary, it does NOT have to be the parents... once they are age of majority.. the child is an adult, and can remove the parents as beneficiary ( if they happen to be) and the child is free to spend that $$$ any way they damn well please...as the trust effectively can dissolve itself upon the whim of the child, or it can continue and the child can name their children as beneficiaries... which is the SMART thing to do.....

Answer 2

Not positive but check into trust funds that cannot be touched until the child reaches legal age. Parents should be beneficiary but not able to touch it.

Answer 3

In my state, this estate is under the jurisdiction of the probate court. The guardian has a duty to file an annual report with the probate court. The register in probate (under the court) does an annual audit of the report.

Unless you are 18 there is little chance that they will listen to you, however there cases where a attorney was appointed by the court to represent a minor. Be sure of your facts. If you know an attorney who is not known to your parents, he might talk to you for 15 minutes, free. Don't rule out the possibility that he or she will call your parents.

Answer 4

Children don't have any rights until they turn 18. That is why their guardians are called their "legal guardians", these guardians are adults. What you need to do is go to court and win a judgment against your parents. I would assume litigation or a trust fund would take care of the problem.

Answer 5

Hire a family law attorney to set up a trust. Then any expenditures would have to be reviewed and accepted as solely benefiting the minor. I have provided you a website below that may give you more information.
Hope it helps

Answer 6

There isn't any steps one can take to stop guardians from taking the money. A trust might fool the guardians into believing they can't touch it, but they can because no one cares.

Answer 7

i do not understand "lot of money" for instance if it is 15K or less you could get savings bonds in their name that no one could touch unless (god forbid) they died. if that does not solve the problem because of a much greater amount get a lawyer involve and go the trust fund route..

Answer 8

Emancipation.

Google it.