| Is it legal to drain your child’s trust fund?

Is it legal to drain your child’s trust fund?

Catherine asked:


Lets say there was a $20 million trust fund set up for a child, so when she turned 25 years old, she would obtain the money.

If the child’s parents went into bankruptcy, could they drain their child’s trust fund?

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Comments

2 Responses to “Is it legal to drain your child’s trust fund?”

  1. Brandy D on June 12th, 2009 4:40 pm

    if they hold legal custdy of the fund then yes. its wrong but do-able.

  2. mousemom125 on June 13th, 2009 4:22 pm

    No they cannot. That is the whole purpose of a trust fund. Usually they are managed by an attorney who will disburse funds when the child becomes of age.