<p>Legally, Lafalum84 is correct in saying that the money belongs to the child and can’t be withdrawn without their permission (although until they’re 21 the child can’t withdraw the money without the parent’s, or account guardian’s, permission). </p>
<p>Ethically, I agree with the column in saying that you can ask that the money be used for this purpose. I suppose it really depends on what you intended for that money to be used for in the first place. I’m guessing that the intent was to ensure that you’re children could get a good education without having to go into debt… not that you give them a lump of money just as they start their careers (a nice boost but more of a bonus than a necessary expense). In that case then it would certainly be unfortunate if one child got a lump sum of ‘free’ money whilst the other had to go into debt for their education.</p>
<p>I suppose it depends on how well you get along with your kids and what their attitudes are towards money (especially inherited money). Ethically I think the money should first be used to pay off educational expenses and then the rest divided evenly between them… however because of the unfortunate legal arrangements of how the funds were set up in the first place that means this can only happen via the good will of the beneficiary and not the person who put the money there.</p>