My daughter was awarded a settlement in an accident that was set up in a CD as a conservatorship. This was set aside for her to go to college. At seventeen, she seems to have lost all interest in pursuing any further schooling after high school. As the conservators, can we cash this and put it away somewhere until she gets older and might want to go back to school? We are afraid she is going to cash it when she reaches eighteen and just blow it.
If the account was established under a court order, your actions must conform to the order of the court. If the account was established under the Uniform Transfers to Minors Act (UTMA) of your state and you are the custodians, you may be required to turn the funds over to your daughter at age eighteen or age twenty-one, depending on the particulars of your state's UTMA. In either event, the bank holding the account should not deal directly with your daughter, but if you fail to comply with the terms of the court order or with the requirements of the UTMA, your daughter could try to press the issue with the court. Deciding how best to proceed is something you should do after talking with qualified legal counsel.
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