Hi, I have typical problem, I have one brother whose income is very less to save for his 2 girl children. So I have decided to save some good amount nearly 1 lakh per year for 14 years in SSA for both girl. Here the problem is since its hard earned money tomorrow if incase by brother family misuse that amount how can I protect my rights. Is there any legal approach I can take now so that the saved amount can be used only for girl education and marriage of my wish.
First answer received in 30 minutes.
Lawyers are available now to answer your questions.
1) you can invest in mutual funds in name of the girl so that when they attain majority the funds can be used for their education and marriage
2) in the alternative open fixed deposit in joint names of your self and the girl and keep on renewing the FD till they attain majority
Thanks Ajay for your information. Mutual is market risk so I wanted for safe returns anyhow for long term Obliviously I can consider it. FD returns are less so I have PPF in my mind but limit is only 1.5 lakhs/annum with marginally less return. Anyhow I thought to check any possibility on POA since, I am spending money on their education as well. I am not expecting any returns for spending money on children now but looking for legal advantage to recover invested money incase brother family is not inline with me on children future. Here FD and mutual will be on my name so I fear it should not create trouble for children to claim the amount incase of my absence. Anyhow I got your points and I too have same opinion but if any legal advantage I can take now please let me know.
file an application under wards act before district judge and deposit money to that court in the name that child. that amount will be drawn only on the request of that child after attainment of certain age like 18 or 21 years or on certain occasion like her marriage etc.
1) in mutual funds you can invest in balanced funds wherein 40 per cent is invested in debt and balance 60 %in equity . in long term they will give you excellent returns
2) invest in funds which have been given 5 star ratings by value research
3) IN PF you will obtain 8.4 per cent annualised returns
4) fixed deposit rate of returns are very law and income is taxable whereas retruns on mutual funds , PPF would be exempt from tax
You can enter into an agreement with your brother to lay down the mode and manner in which the money shall be used by him and also render accounts to you in respect of the use of money. A clause can be incorporated that he shall be liable to be be sued for damages if he violates it. Alternatively, a trust can be formed so that money is utilised for the intended purpose. The trust deed will have to be registered. It will be the duty of the trustee to ensure that the amount is used for the purpose and nothing else.
Hi, You have invested the money with a good intention so in legally you can't do anything if your brother can misuse the money.
Here the problem is since its hard earned money tomorrow if incase by brother family misuse that amount how can I protect my rights. Is there any legal approach I can take now so that the saved amount can be used only for girl education and marriage of my wish.
The amount is kept in the savings account being maintained by you, so there is no danger of the father or other relatives of the children to lay their hand on it since the custody of the said savings account is with you. In fact you could have opened the account in your name and nominated the children as nominees. Well even now you can withdraw the entire savings amount and pool them together in a fixed deposit on your name and can utilise it for the purpose whenever the situation arises.
I am spending money on their education as well. I am not expecting any returns for spending money on children now but looking for legal advantage to recover invested money incase brother family is not inline with me on children future. Here FD and mutual will be on my name so I fear it should not create trouble for children to claim the amount incase of my absence. Anyhow I got your points and I too have same opinion but if any legal advantage I can take now please let me know.
As you have decided to invest the money in a FD account, you ay nominate the children as beneficiaries equally after your time in the event of any unforeseen incidence that may take place in your life. You may also bequeath th amount through a will with full description of the distribution of the amount as per your plans a d desire.