Money in Trust Accounts

[houseworkneverends]

My in law's are incredibly generous money wise (they are emotionally stunted but hey you can't have everything). They've been so good to us in the past. They have recently cashed in some shares/property investments and have given our DD's £20k between them - they have also given similar amounts to their other Grandchildren. They have deposited it directly into their trust accounts (which I control).

DH wants to use this money to pay down some debts, car loan, credit card etc. I am really reluctant to do this, we've already got a really good payment plan (that we've devised ourselves, not from any kind of debt consolidation) and our debts will be paid in full in the next 2-3 years.

My point to him is that this money isn't ours, it's been given to our DD's (who are only 5 at the moment but it's there for us to add to when we can and can be used for university and/or house deposit). He says that for the short term we need to think of the family as a whole and this money would benefit us all and we will replenish the accounts over time.

What are your thoughts? The money has come from his parents not mine but I don't 100% agree with his rational. I do see where he is coming from but I'd just rather leave the money where it is and continue with our payment plan.

What are your thoughts?

My thoughts are that he shouldn't steal from his children. If he has found a reason (in his mind) to take the money now, he'll probably keep finding ways to not replenish it.

It’s not your money. Would you even be able to take it out of a trust without solid reasoning it was for the benefit of your DDs?

I agree with you. It's your children's money, not your husband's to use or "borrow". I'd be disgusted if my husband suggested doing that.

This is not in the interests of the beneficiaries. I don't know who the trustee is (you?) but they have a fiduciary duty to act in the interests of your children. It is a breach of the trustee's duty to agree to this arrangement. Your dcs can sue the trustee when they are older.

Absolutely not your money to take . If you were struggling to feed and look after the children , then after speaking to the in laws I would think it a reasonable request to use some if they agreed so your children weren’t suffering now . However I’m in agreement with you , also how would your in laws feel if they found you had misappropriated it , and equally your children if for whatever reason you didn’t pay it back with the interest it should have accrued by the time it was theirs to spend .

I don't think you can legally help yourselves to someone else's money just because they are a child! Trusts are literally set up to prevent this happening. Same with child earnings. Legally, parents shouldn't access money earned by, say, a child actor, to pay for anything other than the benefit of the child.

Our DC were given an education trust and we took legal advice to ask if we could access part of it to pay for a big holiday which was educational as we were visiting loads of castles and temples and galleries and sites of geographic interest in a very different culture from our own. Obviously, we could only access funds to pay for DC's flights and spending money, not our own costs, and we did ask DC if they wanted to do this first. They were teens and capable of saying yes (very enthusiastically) so the solicitor agreed it was okay. But we had to sign a document. I think if we'd asked to pay off our own debts we'd have been shown the door.

ok so the trust account is just a bank account, linked to our current account, but in our children’s names. As they aren’t old enough to access this money I am named as trustee and it is only visible under my login and not my husbands login

It was deposited straight into your children's accounts...therefore the PIL had no intention of you/husband using it.

So, no it's not "family" money, it's your children's.

The money is for the children's future. You and your DH cannot 'borrow' it.

Absolutely do not let him touch the children's money.

I suspect as soon as the debts, car loan, credit card etc are paid off without any saving, budgeting or pain on his part your DH will run them straight back up again - easy come easy go.

I guess he hasn't mentioned any kind of repayment plan to replenish the children's money?