My mother recently told me that my father had set up a trust fund in my name to go to college. I was never told when it was set up. Mother and Father had been divorced since I was around two years old. Mother had remarried (and has been divorced from him for quite some time). She says that this stepfather had taken those funds (presumably set up in her name) and bought a business with it. My question is: how can a stepfather not named in any legal documents have access to any monies in a trust fund?

It might be that he signed her name ? Also could be it was something she agreed to ? Or lasly it could be that there was no trust fund per say.. not in the legal sense. But a collage fund.
You need to find out what's really going on.

1. if the fund was in her name at divorce, the court may have given her part of the money as part of a settlement??

2. she gave him the money or she signed to allow him access to the money

3. he committed fraud and stole the money.

So how does mother say he got the money ?

Have you went to the bank and asked them to provide you proff of withdraws

It might be that he signed her name ? Also could be it was something she agreed to ? Or lasly it could be that there was no trust fund per say.. not in the legal sense. But a collage fund.
You need to find out whats really going on.

Mom specifically said "trust fund". According to a CPA in my area, trust funds are set in such a way that step-parents can't get their hands on it. Another point ot make here is that the business she said that he bought was actually an expansion of her haircutting business. She would never let me see any of the legal documents connected with this fund or even tell me how much money was there.

1. if the fund was in her name at divorce, the court may have given her part of the money as part of a settlment ????

2. she gave him the money or she signed to allow him access to the money

3. he committed fraud and stole the money.

So how does mother say he got the money ?

Have you went to the bank and asked them to provide you proff of withdraws

Question 1 is not likely. Question 2 seems more valid. Question 3: the guy is a little nuts but he's not stupid. Question 4: She never said how he got a hold of it. Chances are pretty good that she took the money and lied about it all.