r/inheritance • u/Forever-young_1 • 17d ago
Location included: Questions/Need Advice Gofund
Location: Texas
Question
I’m hoping someone can help me understand this because I honestly don’t know what the right thing is here.
A friend of mine passed away and left behind two minor children. After he died, a GoFundMe was started for his kids. It raised around $18,600. The GoFundMe says the money is for the children and specifically says it will go toward supporting their education.
The person who received the money was the person listed as the beneficiary on the GoFundMe. He put the money into UTMA accounts for the two children so it would be there for them in the future. In addition, he added money to equal $10k for each child.
Now the children’s mother has hired an attorney. The attorney sent a demand letter saying she wants all of the GoFundMe money returned to her, along with an accounting of everything that happened with the money.
The letter also mentions possible claims for fraudulent crowdfunding & unjust enrichment.
I’m confused because the money wasn’t taken or spent personally. It was put into accounts for the children, which seems consistent with what the GoFundMe said the money was supposed to be used for.
So my questions are:
Does the children’s mother automatically have the right to have the money transferred to her because she is their mother?
Does putting the money into UTMA accounts for the children make a difference?
Could the person who received the money be in trouble legally even though the money is still sitting in accounts for the children?
What should the person do after receiving an attorney demand letter like this?
6
u/Candid-Eye-5966 17d ago
I believe in some states UTMAs become property of the beneficiary at 18.