It sounds like he would waste the money if he had it. He probably knows this himself. By accepting this money, you are actually helping him. Not only will it not be used on drugs, he will feel good that he got to help a family member. As long as he got the money from a legal source, there is no question that I would accept it.
I would probably put the money into an account that would not be mixed with other money. Once it gets handed to your daughter, you can say that the entire amount came from your uncle. This will give your daughter a very positive memory about him.
James.
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