Legal Question in Civil Litigation in Massachusetts

Redemption of Saving Bonds by Co-owner

My 20 year old daugther whom I put down as co-owner on my saving bonds cashed some of them without my knowledge. Legally not against the law but do I have recourse. After divorce I put most of my money in saving bonds putting my daughters names on half of them equally. The money was for my future retirement. My oldest understood that the money was mine and only theirs when I die. My youngest who has mental problems believes that what is mine is hers. I landed up paying the taxes owed on the redemption of these bonds. The IRS said I was responsible for the taxes becauses I purchased the bonds under my SS# yet my daugther cashed them under her SS#. Love Uncle Sam. My daughter used the money to purchase a car, gifts, and support a guy. They gave some of the money back when I forced them to return some items. She has moved out of Mass to Ohio. I really needed that money and she cashed them in to early and I can't replace it. This theft has really hurt me life long financially. Do I have any recourse legally? I know this must be a long shot. Thank you in advance for any assistance.


Asked on 5/10/99, 9:51 pm

1 Answer from Attorneys
Stuart Williams

Re: Redemption of Saving Bonds by Co-owner

What she did isn't legal. Having her name on the bonds

didn't give her the right to take the money FROM YOU.

But this story doesn't sound right to me.

How much are you talking about? Does she have any left,

uncashed, do you think? When and how did she get physical

access to them? (Why did you allow her access?)

How on earth do you pay the taxes when she got the proceeds?

Presumably to cash them she had to have sent them in and filled

out info on where to send the proceeds and filled in a brand new

W9, which she would have signed, presumably not your social security

number.

How mad are you? How much did this money matter to you?

You can initiate a civil suit against her but it would be good

to collect some admissible evidence against her first, perhaps by

catching her unawares. You could even have criminal charges brought

against her, though I don't advise it. Is there any possibility

she thought she was entitled, that it was a gift?

I'd sure like to see the IRS letter that says you're responsible for

the income just because you originally bought them with your own ss#.

It isn't so.

I have even more questions. I suggest you write answers to me directly

at [email protected] or else [email protected], and then follow it

up a couple days later with a phone call to me at (617) 527-1763.

Stuart Williams Law Offices of Stuart J. Williams

21 Walter St.

Newton, MA

02459-2509

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Answered on 5/18/99, 8:09 pm


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