Creating a Trust for my niece.

[WGALE]

This issue takes place in California.

I'll try to keep to the main points.

I hope this is the right forum for this matter.

I have a 15 year old niece who will be receiving structured payments from Social Security for what I believe to be a disability disbursement on her Father's behalf from a disability incurred while in the armed forces. He is still alive. Her parents are divorced. Her mother is her primary guardian.

My niece approached me and is very concerned her mother is going to go through the payments and spend them frivolously. Knowing my sister all my life I can say my niece's concerns are legitimate. The best solution I can think of is to establish a trust account to receive and hold the funds until she is 18 and then have them dispersed to her in full when she turns 18. The problem is I am not her legal guardian. I believe her father will go along with setting up a trust to collect the funds but I am fairly sure her mother will not and will want immediate unfettered access to the funds as soon as they are available.

Can I set this up with just the Father's approval?

Are there other options I should be considering?

I just want to help my niece get all her money. If she could get it locked up till she's 18, she could have buy a house and a car the day after her 18'th birthday. I'd really like to make this happen for her.

Thanks in advance.

 

[irish223]

This issue takes place in California.

I'll try to keep to the main points.

I hope this is the right forum for this matter.

I have a 15 year old niece who will be receiving structured payments from Social Security for what I believe to be a disability disbursement on her Father's behalf from a disability incurred while in the armed forces. He is still alive. Her parents are divorced. Her mother is her primary guardian.

My niece approached me and is very concerned her mother is going to go through the payments and spend them frivolously. Knowing my sister all my life I can say my niece's concerns are legitimate. The best solution I can think of is to establish a trust account to receive and hold the funds until she is 18 and then have them dispersed to her in full when she turns 18. The problem is I am not her legal guardian. I believe her father will go along with setting up a trust to collect the funds but I am fairly sure her mother will not and will want immediate unfettered access to the funds as soon as they are available.

Can I set this up with just the Father's approval?

Are there other options I should be considering?

I just want to help my niece get all her money. If she could get it locked up till she's 18, she could have buy a house and a car the day after her 18'th birthday. I'd really like to make this happen for her.

Thanks in advance.

I don't know a whole lot about SSDI, but I did a little research. Hopefully someone with more knowledge will also reply.

To begin, the checks are generally issued to the minor's custodial parent. It is not possible to set up a trust without the mother's permission. Really, the benefits are intended to provide for the basic needs of the dependent, in this case your niece, so it is assumed that her mother will use the money in that way.

If the father believes the mother will spend the money inappropriately, then I think he can try to have the checks sent to him. From what I've read, this will be difficult to accomplish.

If, after the payments have begun, the mother is clearly spending frivolously, then the father can report her to SS and request that he receive the checks.

Hope it helps!

 

[army judge]

First of all, I'm glad SS decided to pay someone.

Her father appears to be disabled.

The child 's custody appears to be held by her mother (your sister).

Irish is right by informing you those payments aren't for anything but living expenses.

This isn't a structured settlement, either.

It's merely an entitlement paid by the government to beneficiaries and their dependents.

The payments will stop when your niece reaches the age of majority, in three years.

SS will keep your sister in check.
Sis will be required to report and account for how she used the funds to benefit the child.

The payments aren't that much.

SS caps out at about $2300-2400 monthly.

Most people receive far less than that.

If you believe a representative payee (that is what your sister will be) is misusing SS payments, you are always free to contact SS, as is the child beneficiary.

And, either of you are free to speak to her father, who can also bring the alleged misuse of any funds to the attention of SS officials.

Thank you for trying to look out for your niece.

Let's hope everyone behaves themselves.



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