Legal Question in Banking Law in California

My neice is 15 -1/2 , she is going down the wrong path...smoking marajuana, F's in school and very very disrespectful. She has quite a bit of $$$ in a C.D. custodial account that I am in charge of that I set up for her with money that she has recieved from mostly from my late grandmother and us ( her family ) over the 15-1/2 years intended for college or something good. I am afraid that when she turns 18, and I have to give this money to her, she will blow it all for drugs and what have you.

She is NOT responsible now and I highly doubt that she will be responsible enough in 2 -1/2 years from now. What can I do to hold off until she is 25 or making her have to be drug free and in College in order for her to get this money ? In California I am required to hand it all over to her at 18 and I need to figure out something else until she is ready.


Asked on 12/26/10, 9:06 am

2 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

As much as you might like to rationalize keeping her money from her, it's her money to do with as she pleases once she's 18.

Read more
Answered on 12/31/10, 10:39 am

Mr. Stone is probably but not necessarily right. You would need to sit down with a trusts lawyer and go over where the money came from and under what circumstances, and how you came to control it, to see if there would be some way to move the money into a restricted trust. Only by going over all the facts and details in person could someone say if there is an option or not in this situation.

Read more
Answered on 12/31/10, 10:46 am


Related Questions & Answers

More Banking Law questions and answers in California