Guardian by Pyro63
Summary: When Buffy's mother and step-father die in a horrible accident, Giles's half-brother Spike and his wife Cecily step in to take custody of 16 year old Buffy. But as weeks progress and Spike gets to know Buffy more and more, he finds his attraction for her growing. Can Spike handle being the guardian to Buffy without letting his lust take over? Or has he bitten off more than he can chew? Warning: This deals with a relationship between a 28 yr old and a 16 yr old, so if that squicks you out don't read!!!
http://spikeluver.com/SpuffyRealm/viewstory.php?sid=26872&warning=5This meets all the other criteria except Spike is Buffy's legal guardian, not her teacher.
Willow finks, Buffy lies in court, Buffy slaps Willow and reads her the riot act for meddling.