How to Safely Get Money Back that is Held By My Parents

My question involves court procedures for the state of: Florida

I was a college going student and I am 23 years. I live with my parents in Gainesville, Florida, and they pay all my expenses. I was listed as a dependent in their 2015 tax returns also. I have had $15000 in my personal account, which was my scholarship money that I received directly from my scholarship provider. I just graduated with my BS from UF and I am planning to go for MS elsewhere and I need money. During January 2015 , when my mother requested, I wrote her a cheque for all $15000 on her name and she deposited that cheque in a bank account which she had jointly held with my father (that account was “joint with right of survivorship”). Since then, my personal bank account has just 1 dollar. The sole purpose of that $15000 transfer was to make some interest out of that $15000 (in my account, I do not get any interest). So, basically, I loaned that money to my parents.

During April 2015, my father moved all that $15000 (and few more thousands of dollars remaining in that joint account, which totaled around $20000) to his personal account which he newly created at that time (and which brings more interest than that the joint account he had with my mother). After that, my parents closed their joint account.

My father spent some of that money (from his personal account that he created in April 2015) for house hold expenses. Recently, my parents told me that my mother has been facing a lawsuit (and this lawsuit was filed prior to January 2015. They never told me of this lawsuit before because they afraid that I may be morally upset and it may affect my studies otherwise: thanks to the care my parents have taken on me). Now my parents are little bit educated on the matters related to the consequences of a lawsuit and money transfers and they are now concerned that they made a mistake for taking my money during January 2015, which otherwise would be free from any litigation. However, they wish to give me back that $15000 to my personal account so that I can use it during my Masters degree. However, after reading this forum, we are all concerned of fraudulent transfer claims. Therefore, I am posting this matter here for your feedback.

What is the best way to get back my $15000 without facing any fraudulent claims later on from the person suing my mother? I have provided some options below, after discussing with my parents and after doing some quick research (I know that my research is not comprehensive in any manner).

(i). My father writes me a cheque for $15000 (from his personal account, that he created in April 2015, on his name alone)

(ii). My mother joins the personal account of my father (which he created in April 2015, on his name alone) as “joint with right of survivorship” then she writes me a cheques for $15000

(iii). My father transfers $15000 to my mother’s personal account (my mother has a personal account on her name alone) then she writes me a cheque for $15000.

(iv). File a lawsuit on my parents to get that money so that everything looks legal (I think this is an extreme option though!)

(v). My father writes a cheque for $7500 to me from his personal account AND my mother writes a cheque for $7500 to me from her personal account

(vi). Any other option

There is no dispute, financial or otherwise, between me and my parents. Our goal is to make sure that I get my $15000 into my account AND that payment should not be a fraudulent transfer and should not bring any further legal trouble.

Keep it simple. You can trace where the $15k came from and where it is going. It is your money. Just have your father write you a check for the 15K and deposit it back into your account.

Many thanks. I am sure you read my message completely. Because I do not want to be in legal trouble (also I do not want my parents to be in more trouble), I once again, politely remind you the fact that I am dependent on my parents. Hope this dependency will not change your advice.

Being a dependent has no impact at all. You personal could be a millionaire and still be a dependent.

Many thanks again!!

Thanks again.

I wrote the cheque on my mother's name (who was sued and the litigation is still going on) and it was deposited in their common account, although, my goal was to give that money to both the parents, who will get some interest on that but I simply put my mother's name on that cheque.

If my father (not my mother) writes the cheque back to me directly for $15000, from his personal account, the Judge may not buy it. Choice (iii) may be better instead of Choice (i)?

I've carefully read your post and I agree with the suggestion that your father just write you a check to you for the $15,000.

Since your mother was sued as an individual, it will only be she that may have to address the issue of a possible fraudulent conveyance and she would likely have a plausible defense to the allegation because the money was yours, intended to be held for you, and then transferred to your father for additional potential earnings, and now back to you.

Whether the issue of fraudulent conveyance actually ever comes up depends on why she is being sued, how much she is being sued for, whether she loses, and whether or not she pays if she loses. Perhaps some details about the lawsuit could help us provide a guess as to the chances of the issue arising.

Thanks and appreciate.

There is some issue related to a common business my mother has had with the suing party sometime ago. My parents told me that if the other party wins, they will 100% come for collection, even if they can collect just 1 dollar from us. That is why my parents want to pay my money back as quick as they can AND want to make sure that I will not get this fraudulent transfer “mud” stick to my hands. They are feeling sorry for borrowing my money on my mother’s name at the first place, despite having a lawsuit.

I would follow your advice.

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Quoting john376

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Thanks and appreciate.

There is some issue related to a common business my mother has had with the suing party sometime ago. My parents told me that if the other party wins, they will 100% come for collection, even if they can collect just 1 dollar from us. That is why my parents want to pay my money back as quick as they can AND want to make sure that I will not get this fraudulent transfer “mud” stick to my hands. They are feeling sorry for borrowing my money on my mother’s name at the first place, despite having a lawsuit.

I would follow your advice.

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Please let me be more blunt about something that has already been addressed. There is plenty of proof to show that the money originally came from you to start with. Therefore its clear that the money was originally yours. Therefore its completely safe for your father to write a check to you. You can prove, with hard evidence, that the money was yours to start with.

Thanks again. Yes, I have evidence to convince any one (a Judge or even an elementary school kid) that it is my money. The bank records will speak for themselves (it directly came from the scholarship agency to my bank account. I have had no money except this scholarship money in my account: and I transferred it to my mother). I am just asking for that money I transferred. No more no less!

You and other people in this forum really helped me!

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Quoting john376

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Thanks and appreciate.

There is some issue related to a common business my mother has had with the suing party sometime ago. My parents told me that if the other party wins, they will 100% come for collection, even if they can collect just 1 dollar from us.

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You haven't answered the question about the lawsuit details. Most importantly, how much is she being sued for?