Should parents stealing from a child' trust fund, such as an education trust fund, have the same penalty as stealing the same amount from a bank?

[Kelley1]

Updates

9 mo

If parents wish to maintain ownership of money they are saving for their children's educational funds, they can put the money in a bank account or in whatever manner they choose. However, to claim the tax advantages of an educational trust fund, they must give up some ownership.

The choice is maintain ownership of the funds or else receive the tax benefits of an educational trust fund and give up ownership of the funds. Parents cannot have both ownership and the tax advantages.

[Kelly6]

@Kelley1 absolutely not. parents raised that kid and took care of them and might need that money for some reason.

people who rob a bank don't manage a bank and didn't create that bank

[Kelley1]

Parents have a legal and moral obligation to care for their children. They don't have the right to steal from them. If parents are not willing to raise and care for their children, they shouldn't have children, or else they should put them up for adoption.

You might have a valid argument if the parents established an account for their children's education and fully funded it. However, a trust fund is often set up with money donated to the children by grandparents or money left in a will, money the parent didn't earn.

[Kelly6]

Still it’s their parents

[Kelly6]

@Kelley1
Parents have obligation to take care of kids or put them for adoption , is very weird thing to say.

[Kelley1]

Parents are legally and morally obligated to care for their children until they reach the age of 18. If they are unwilling or if that is too big a burden, adoption is an option.

[RedInnocent69]

@Kelly6 there are examples, like where a parent with addiction issues has tried to spend money set aside for a child from money from their deceased grandparents…

[Kelly6]

@RedInnocent69 for those reasons sure

[Agape93]

Harsher. Grand theft, embezzlement and fraud

[TallAnon]

So that's a weird case, aren't they the ones putting that money in there in the first place?

[Kelley1]

No, not likely.

[TallAnon]

A trust fund doesn't spawn out of nowhere though

[beefcakebradybatson]

Worse. They're robbing their child's future.

[Bklynbadboy12]

No how can you say that when the trust fund was probably set up by there parents

[Kelley1]

For the same reason, wives claim money from their husband was co-mingled and gifts.

[Kelley1]

That would not apply to money depsited in a separate bank account that the parents intend to use for their children's eduction and not created as a trust. There are special rule for trust accounts.

[Cormac995]

Yea it should be felony fraud and theft.

[DrPepper12]

Perhaps more. That's cold.

[RedInnocent69]

Yes. Parents abusing trusts 🤬

[Nice222]

Yeas they should be charged the same

[Colin234234]

Nope!