Uniform Gift to Minor Act

[rhh]

What is the name of your state? CA

I want to set up an acoount for a young child, that will be transfer to him at an adult age. I think this is a good vehicle? My question is...can the mother of the child touch the money?
Mom and dad wee not married and the money in the account is/will be from the deceased father.

Thanks in advanace for your thoughts..

 

[curb1]

You might check on a state "college saving plan" with you or a resposible person as the owner. That would be very simple and might accomplish what you desire. All of the income gained within the plan is tax free. I have done many for grand children.

 

[Texas Pooh]

... money is from the deceased father

Is this money the child has/will inherit from the deceased father? Or simply money left to OP by the deceased father, that OP wants to gift to the child?

 

[rhh]

source of funds...

friends
insurance
fatrher's assets

mother and father never married...the father's family is looking for a placement of money that could not be touched by the mother and transferred to the boy at legal age is this the correct thing to do?

thanks in advance....

 

[Texas Pooh]

Again, are any of these funds (insurance, father's assets) money that the child is inheriting under a will or by intestate succession?

 

[rhh]

no...dad did not have a will or any document to direct the money

 

[anteater]

no...dad did not have a will or any document to direct the money

OK, I'll bite. Has probate been opened to deal with Dad's estate and distribute his assets according to California's intestate succession statutues?

 

[rhh]

no probate... total dollar amount is maybe $25K.... again , the family wants to protect the money from the crazy mom.

 

[anteater]

Who has been appointed as the guardian of the minor's estate?

 

[tranquility]

Set up an account in your name FBO the child. Since there was no trust set up (or other written wishes withholding the money until majority), I'm not sure you can make the minor wait until 18 to access the money if he wants it, but I'd have to check the code first to be sure.

Info edit:
Per CA Probate Code section 3920.5, the limitations on setting up an account where the minor must wait are listed. Since there are no facts to indicate any of the limitations are satisfied, I don't think the money can be withheld from the minor if he wants it.

 

[Texas Pooh]

OP,

Anteater and Tranquility have raised the issue. If the child inherits the money by intestate succession, you and/or other family members can not decide how to invest the money and/or insurance proceeds (no matter how well-meaning you are).

There are a couple of options, including have a guardian appointed for the child other than Mom in the probate proceeding and/or trying to get Mom to voluntarily agree that the money should be put in a college saving fund/UMTA, etc. Of course, the latter may be difficult given your description of Mom.

Someone is going to have to open up probate - if there is no will, the family can not just divy up these assets. Further, father's heirs have to be legally established.

Sounds like a lawyer should be consulted, at least to understand what you are dealing with.

 

[tranquility]

I also think a lawyer is appropriate as the concept of "minor's compromise" may be implicated as well. There, to receive the money a signature from a custodial parent or guardian may be required. There may be some way around this without too much effort, which is why an attorney would be required.

 

[anteater]

Set up an account in your name FBO the child. Since there was no trust set up (or other written wishes withholding the money until majority), I'm not sure you can make the minor wait until 18 to access the money if he wants it, but I'd have to check the code first to be sure.

Info edit:
Per CA Probate Code section 3920.5, the limitations on setting up an account where the minor must wait are listed. Since there are no facts to indicate any of the limitations are satisfied, I don't think the money can be withheld from the minor if he wants it.

Tranquility - That would be OK for money that the friends are chipping in. But wouldn't the provisions of 3300 - 3413 require appointment of a guardian for the funds inherited from the father (and, I guess, the insurance)?

 

[tranquility]

I think we're more likely to fall under 3610, but you could be right.

 

[tecate]

No need for a formal probate with this amount. See 13100 for title clearing procedure. Question is whether OP has "control" of father's $$, or whether $$ are just sitting in an account waiting for someone to do something. Note that family member may not have standing to file under 3411 unless family member is "holding" the $$.

Does mom know about the $$? If OP does nothing, where will the 1099 go?

I don't think 3413 requires appointment of a guardian. It would be a shame to require one for this amount of $$. (Expensive!!!!) I think mom will get notice of any court proceeding. Mom will also have priority.

Best outcome if mom fights a petition would appear to be a blocked account, or if mom gains control of $$, a bond.