When Marshall Grear's young granddaughter received $42,000 in an accident settlement several years ago, he assumed the money would be waiting for her when she turned 18.
The stock market has changed that.
The money seemed safe because it is controlled by a Genesee County Probate Court-appointed conservator -- not a cent can be touched without a court order.
Grear figured he had no need to worry. That is until he took a look at a statement earlier this year when he gained custody of his now 15-year-old granddaughter.
Grear: "She lost about $17,000 last year when the stock market crashed. Someone should be responsible for that money."
His granddaughter's money, like many other Probate Court funds for minors, had been invested in the market through the years to yield higher returns.
When the market tanked last year as the economy worsened, dozens of conservatorship accounts took a dive, such as Grear's granddaughter's.
Some lost close to $100,000.
But court officials and local attorneys who act as conservators said there is nothing illegal about investing the funds in the market -- even if there are big losses.
Full Article and Source:
Stock drops hurt kids' funds under watchful eye of Probate Court
The stock market has changed that.
The money seemed safe because it is controlled by a Genesee County Probate Court-appointed conservator -- not a cent can be touched without a court order.
Grear figured he had no need to worry. That is until he took a look at a statement earlier this year when he gained custody of his now 15-year-old granddaughter.
Grear: "She lost about $17,000 last year when the stock market crashed. Someone should be responsible for that money."
His granddaughter's money, like many other Probate Court funds for minors, had been invested in the market through the years to yield higher returns.
When the market tanked last year as the economy worsened, dozens of conservatorship accounts took a dive, such as Grear's granddaughter's.
Some lost close to $100,000.
But court officials and local attorneys who act as conservators said there is nothing illegal about investing the funds in the market -- even if there are big losses.
Full Article and Source:
Stock drops hurt kids' funds under watchful eye of Probate Court
5 comments:
"not a cent can be touched without a court order"....?
OK, has Marshall Grear checked to see how much the fiduciaries have been paid to "protect" the $42K?
The stock market crash hurt so many people, but it will recover in time. I'm not saying it was proper for the money to be invested in the stock market - I'm just saying it will come back eventually.
The fiduciaries should be held accountable for not watching their ward's investments.
Many people lost their shirts in the stock market when it tanked.
I do not really think this is a valid complaint.
I feel bad that it happened to Marshall Grear's granddaughter's account, of course, but the stock market is long term. It will recover.
And perhaps most of the loss she suffered on the account is the profit it made before the tanking.
Trust accounts such as these should be deposited into the safest, most secure financial institution (like a bank with FCIC safety net) and that in my opinion is not the RISKY stock market!
IDIOTS!
It seems to me people in positions of trust have shrunken brains and are getting away with their negligent ways, not being held accountable for being STUPID!
The "watchful" eye of probate sure is a laugh, isn't it?
How qualified are these fiduciaries when it comes to money management, anyway?
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