My mom opened up a benefit account for me, which was set up to pay for medical bills. None of the money went towards medical bills. I had no say as far as what happened to the money because my name wasn't on checks or anything. There was over 5 grand in the account and I dodnt know where all of the money went. $700 went for a computer for me for missing school work that I had to make up. Also my mom bought me school clothes with it and my little sister $500 bucks. Then she rented out a apartment for primarily herself and my little sister evreyother week. I was so upset with her I could barely stay home. Now I live with my boyfriend and the benefit account is completely wiped out. How much trouble can you get into for 1. spending money the way its not set up to be spent. a.k.a for the benefit of jane doe to pay for medical bills. And 2. wouldn't that be theft.

If you are a minor and the bank account was due to some sort of settlement due to a lawsuit, the money in the account should have been overseen by a Judge and any of the expenditures out of this minor's account needed prior approval before being taken out of the account.

How old are you? Was the money from a lawsuit settlement?

Where did the money that went into it come from, if she collected money from people, stores and got donations
** if so was a non profit set up

If there was no non profit set up, she would have owed taxes on the money people gave her.

Next who actually owed the account, whose name was on it specificly.

And who set up the rules for the accout ? If her, would she not be able to later change the rules if she did not report to someone.

The account came from donations from people. Friends doing car washes and people I didn't know. My name was on it it was for the benefit of nicole.

The money did not come from a law suit I was 16 at the time the account got satrted I was turning 17 in a few months after the account was started.

Sounds to me like these were gifts from people to you, so (a) they are not taxable, and (b) the donors can not claim a tax deduction. If the account was set up in your name as a minor then the money must be used for your benefit alone. Buying clothes for you, or a computer for you, is to your benefit, so that seems legit - at least from a legal perspective. But from an ethical perspective I think all the money should be used only for the purposes that the donors intended - so if they gave with the expectation that it would be used for medical purposes, that is how the money should be spent. Buying stuff for your sister, or paying rent for an apartment is not specifically for your benefit, and consequently is improper.