Tags: arkansasbri, attorney, childs, custodial, father, fund, law, lawyer, legal, living, old, state, texas, trust, trusts, wills
Childs Trust Fund
The state is: ? Living in Texas but the trust is in Arkansas
I'm a 40 yr. old father of 2. I'm their custodial parent. About 5 yrs ago, their mothers grandmother passed away, leaving an inheritence to many, including them. They were both left approx. 50,000, so a total of 100,000 in a single trust fund. They're not able to access it until they go to college, and only for college related issues, OR until the youngest is 25. Right now, they're 12 and 13.
Well, right now, we're in a financial whirlwind, given the current stock market crisis. Yesterday I received a tax statement from the bank regarding the trust. Apparently, some genius investor thought that it was a safe bet to invest over HALF of their monies in Freddie Mac. With that said, from my interpretation of the statement, in the last month they've lost a total of about 68,000. Almost 66 percent, given they had around 112, 000 due to interest over the last few years.
My questions are these. 1. As parents, do I or their mother have any rights to oversee this account, or since it's a court ordered account, does the bank have the right, without oversight, to just let this money slip away, due to poor investment practices?
2. Can either the mother or I have this fund moved from Arkansas to Texas? The bank is some local bank, and there's no one on the ground there to act on the childs best interests. I'm sure the presiding court doesn't even know the loss the children just took.
3. Are banks responsible, in regards to court ordered accounts for minors, for any kind of oversight/insurance against such massive losses.
I'm calling them today at 9 a.m. to have them clarify the statement, but I'd love some input from anyone here on these issues. I don't expect miracles, I know they're screwed in some part. I'd just like something concrete to help me understand the true depth of this issue.
Thanks in advance to any and all for your hasty replies.
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- 1 Comments
- Consult with a certified financial advisor, trust attorney or with a trust department of any bank (other than the bank that is holding the money now) to figure out your options. It is very difficult to get trustees changed without an expensive legal challenge, but if you come up with an idea for a more profitable/better way for the money to be invested, such as a college savings fund offered by your state or some other alternative, perhaps you can request that the money be switched there.#1; Tue, 14 Oct 2008 11:05:00 GMT