Most people would like to think they can trust their relatives to put their children’s best interests ahead of their own. Most California parents who have conservatorships over money intended for their children do everything they can to make sure that it benefits their children. Sadly, this is not always the case. Some parents take money away from their children to suit their own wants and needs.
For example, the media in another state recently reported the arrest of a mother accused of embezzling hundreds of thousands of dollars from her child. She served as conservator of funds intended for her child who reportedly suffers from permanent brain damage and cerebral palsy, among other medical issues. The money came from the settlement of a medical malpractice claim, which also included a reversionary trust containing approximately $3 million.
Reports reveal that the mother was supposed to put the money paid directly to the child, approximately $550,000, into a restricted account, clear all expenditures with the court and provide a court order to a bank before any funds could be released. She allegedly did not follow those instructions. Instead, she and her husband spent the money on themselves. It is unclear how the woman came to the attention of authorities. The situation begs the question as to whether this would have happened if other relatives had kept a closer eye on the conservator.
Large sums of money can be a temptation for many California residents. However, most involved in conservatorships do not give in to it. If relatives of a parent serving as a conservator notice unusual spending, it may bear looking into more closely. Thereafter, it may be wise to take those suspicions to an attorney who can help.
Source: wzzm13.com, “Police: Eaton County mom embezzled $400K from her 9-year-old son’s medical trust”, Christopher Haxel, April 27, 2018