What if your dad left you 125,000 in a life insurance policy and your family members spent it?

Most states have very strict laws pertaining to this exact situation. In my State, these laws are generally referred to as "The Uniform Transfer to Minors Act." Our law is similar to other states' laws, because it restricts payment of the entire amount of the proceeds, if more than $5k, to an adult who has been appointed by a court as your financial guardian. Contrary to what most folks believe, a parent DOES NOT automatically hold guardianship over a minor child's financial estate.

Since the entire $125k was paid, I suspect someone was appointed as your financial guardian by a court. This is very easy to find out, with the assistance of an attorney. Whenever a financial guardian spends some of these proceeds, he or she must be able to demonstrate how you benefited directly; expenditures such as your college education, a new car for your sole use, etc., would qualify. The law holds the financial guardian responsible for reimbursing you (plus interest in some states) any monies spent that fail to meet this test. Egregious cases may be subject to criminal prosecution.

I suggest you seek the advice of an attorney.

You'd first have to find out how they got it.

While there is a remote chance they could have gotten it illegally by either pretending to be you and then outright stealing it....the more likely case is that you were not of legal age at the time, the money was put in a trust on your behalf and then they spent it from that and had ways to indicate it was 'for your behalf', when maybe it wasn't.

You need to find out what they used the money for. Maybe it helped pay for the house you lived in, the food you ate and the clothes they bought you and you just didn't know it at the time. In that case, the spending was justified and was exactly what your dad intended the insurance to be used for.

If that's not the case, you could try to sue, but they you'd only be going after their assets that they purchased with the ill gotten money. If they spent it on things, you could make a claim for those things, but you are not going to get the money back from the person they spent it with.

For example, if they bought a car.....you'd get the car (which depreciated in value). You would NOT get the car dealer to give you back the money they spent.

So no matter how you look at it, unless they have some money or other assets from somewhere else in an amount equal to what they took from you, which is doubtful, you may not have any other recourse to get your money back.

But for revenge, you may want to try to encourage your local prosecutor to attempt to bring criminal fraud charges (as long as they statute of limitations has not run out.....this can be as little as two years in some states).

First of all your family can't spend it unless you're under-aged. Unfortunately if you are/were under-aged at the time the money was spent, you'd have to hire a lawyer or financial investigation firm to find out if the money was mis-appropriated. The more unfortunate part of it, is that if your guardian chose not to work and lived off of the money while supporting you, then you have no recourse. Anyone who is your guardian and spends the money doing anything for you can "prove" that the money was not "misappropriated". They might have jacked you up for the future, or kept you from having the head-start that your father obvioulsy invested well in for you, but if you received anything from them that over-time can amount to the total sum, then I'm afraid you just have to chalk up the loss and walk away. If this did happen to you, but you're under 25, you can recapture the opportunity by yourself by establishing some kind of retirement fund. You don't have to do this through your job and it doesn't take alot of money. Most of them will give you this awesome credit for investing post 26 by doubling your interest about 20 years before retirement, which is a VERY good return. I just wish I had done it. LOL I hope everything turns out ok for you.

I guess that most people would say sue them. But I say it really depends on what they spent it on. If it was bills and necessity them im sure your dad would be proud of you to just suck it up. But if the blew it ill tell ya the whole legal process thing is a joke and the only ones who really get paid are the lawyers. 9 times out of ten the people dont have the money to pay back the money and all you really get is headache and heartache. I say forgive them and take the chance to show real love to a family who probably never had it. You could change the pace of an entire generation in your family.

If it was left to YOU via a life insurance policy, your family members couldn't have gotten their hands on it to spend it. The check is always made out to the beneficiary ONLY.

If your family members spent the procedes from the life insurance policy, then the monies were designated to be given to THEM, not YOU, regardless of what your dad told you.

Intent means nothing, only the beneficiary listed on the policy contract counts.

IF U ARE THE NOMINEE OF THE INSURANCE MONEY AND U R LESS THEN 18 YRS THERE IS NO WAY U COULD GET U'R HAND ON IT , IT WILL BE PLACED UNDER THE TRUSTEESHIP OF AN GUARDIAN OR APPOINTEE AND AT THE TIME OF DISBURSING THE APPOINTEE NEEDS TO GIVE AN UNDERTAKING THAT THE POLICY PROCEEDS SHALL BE USED FOR THE PURPOSE OF THE NOMINEE, IF THEY HAVE SPENT IT AND U HAVE PROOF THAT IT WAS NOT SPENT ON YOU THEN THEY CAN BE SUED

I think that there are clauses on things like that that make it where it's put into a trust fund until the beneficiary turns 18 or 21.

If that were a real case scenerio, I'd be pissed, unless it went toward my education. If it went toward a new car for my mother's new boyfriend, I may have to have a FIT.

I can't find the problem.

Who was named in the policy? If they were and received the check why can't they spend it.

If it was yours how did they get their hands on the money?

If you were a minor when this happened, you may have recourse to legal remedies. See an attorney.

sue them and make them pay back every penny of it ...

but if he left it to you how did they get it?

if you handed it to them and they spent it then its your own fault