re: How should I handle this situation figuring out my Dad used my birth money?

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Or even said when he paid the hospital bill, hey you know what son, can I use the money you gave me to cover this? Then its not stealing IMHO. but if he didn't, its taking something that doesn't belong to you. And its theft IMHO.

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This covers it. I'd never use money given to my on for my own expenses. Now, a 10K hospital bill caused by stupidity is another story. However, that should be handled up front and not in a shady manner.