Trustee has cleared account

[withholdcontact]

Hi I was wondering if anyone could help, my ex husband and I are joint trustees on a Halifax save4it account set up for our daughter when she was born in 2008. The account had nearly £10,000 in it. Yesterday by chance we learned that over the space of a year her father has transferred nearly all of the money to himself. Would this be considered fraud? He has not been spending the money on our daughter.

Was it mentioned in the divorce proceedings at all?

If it was just a basic savings account that you both set up for your daughter rather than an actual trust instrument, you won’t have a leg to stand on. As a joint signatory, either of you could have emptied the account with no comeback.

It’s not technically theft either. It might be in your daughter’s name but that’s irrelevant. The account could have been called 007 James Bond but it’s just a meaningless descriptor. He hasn’t committed any criminal offence so the Police won’t be interested either.

You and your daughter should contact Halifax and tell them that the money was withdrawn without her consent and was not used/spent for her benefit.

What a complete low life your ex is. This will catch up with him one day, I'm sure!

Are you a trustee or a signatory. If you are a Trustee I think you will have to take reasonable steps to recover the money or you could be liable to replace it. He would be in breach of trust for taking the action. If you're a signatory to a savings account then no one has probably done anything wrong legally albeit morally they have.

Wow another story of a man stooping to a new low on Mumsnet. Despicable hideous behaviour - your poor daughter.
if your DD has contact - has she asked him about it ? Also I moved my DD’s from the Halifax CTF account into a different one until she was 18 (as it had better interest) and then transferred it to her on her 18th birthday and she then transferred it to an adult ISA.
My point being, is there a chance he’s moved it to a better account and is going to give it back to her? And can she ask him this in anyway and say she assumes this is what he’s done?
good luck with this @withholdcontact - he will be punished for this in some way at some point . Karma will get him.

What an absolute cunt.

Who put the money in in the first place? You, him or both?

As others have said, legally he’s done nothing wrong. Morally, he’s awful.

I'd speak to action fraud first. Get some advice then take it from there. If he has used the money on himself, it is fraud and the police might be interested, though there's no guarantee. Block any more coming out by talking to the bank.

I hope he's invested it for her and he's not used the money personally. 🙏

Probably not, but a solicitor might be willing to act on a CFA (known more commonly as "no win no fee")... as co trustee you are probably obliged to attempt to recover it for her

Easy peasy, they fake your signature or at least that is was my ExH did.

First thing I'd do is talk to Halifax - explain the situation - make sure he could legally do this and your signature hasn't been forged or that bank hasn't messed up.

I'd get all the information I could gather - what kind of account - how he did this - can they suggest any redress - is the money in another account for her.

Then once you've exhausted them I'd try someone else - some support group and see what they say - I did see a similar thread on Martin Lewis forum and it wasn't very positive though husband there was sole trustee on account so if you are on it as well may be very helpful.

Yes in this case I agree. It would be unkind to generalise but in this case you’re right.

It is fraud and the bank should be alerted... My exh was stashing cash in dc's accounts then cleared it. When you open an account for a dc it's on the condition it's for the dc.... He's pocketed the lot. Take him to court.. Even if the fees are £9999 to get it back... He is a lowlife

Legally he hasn't done anything wrong as for as removing from the bank. However legally he has not used the money for the benefit if the beneficiary of the trust so he remains legally liable to his daughter for the money he has stolen from her.

Yes, this is what I was getting at, if he's committed fraud, she might be able to get somewhere

Just for clarity- it doesn't have to be a trust account for him to hold it on trust. If it was a savings account for your child it is her money. If he withdraws that money he holds it on trust for her. There are then rules of equity allowing you to recover the money e.g. if it went into his own bank account then he is deemed to have spent his own money first, so if he has money up to £10k left in his account that is her money. After that, the money can be traced into his purchases, for example the car.

Legally he has done something wrong if he isn't using it for his daughter's benefit but he has legally removed it from the bank as either Trustee can sign.

I don’t think you have a leg to stand on.

What were the terms of the account? You say it was a child savings account? Was your daughter named? Is it clear that the signatories were not the account holders but operating it on behalf of a minor? Also was the account due to move into your DD’s name at 16?

It’s not technically fraud in this case

It doesn’t seem like this was actually a trust from OP’s update, just a childs savings account in which case this doesn’t really apply and he hasn’t legally done anything wrong.

My brothers Halifax acct for dla was single signature

What a troll you are…

Yes I don’t think it was a trust either. Sounds like a child saving account that was set up for the girl. My mum had a similar account with Halifax set up for me and she and my dad had access to it. You can list basically anyone you want to have access.

If her father had access to it the way my parents did, unfortunately that means he’s entitled to take the money out if he sees fit.

sounds like he has a gambling problem or something

It remains the daughter's money and as account holders for the child they are trustees.

If it’s a save4u it’s an account for an adult who wants to put away money for their child, but unfortunately it’s perfectly legal for said adults to withdraw the money.