$$$ car for trust fund kid?

[Anonymous]

I’m not sure where to post this.

Teen with trust fund wants $$$ to buy their first car within the next three months. Trust fund will transfer completely to teen in about 12months. If you were trustee, what would you do?

[Anonymous]

If the trust is set up in batshit fashion to give tons of money to an 18 year old, maybe let them get whatever they can 'afford' and start learning natural consequences.

[Anonymous]

What genius set up such a trust?

[Anonymous]

Anonymous wrote:If the trust is set up in batshit fashion to give tons of money to an 18 year old, maybe let them get whatever they can 'afford' and start learning natural consequences.

This!

My kids don't get control of their trust until they are 37 - when spending habits are established and maybe they need tuition for their kids

[Anonymous]

I would loan them my own money at 100%, and repo the car if they don't pay off once they gets the money.
They won't even notice the loan interest.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If the trust is set up in batshit fashion to give tons of money to an 18 year old, maybe let them get whatever they can 'afford' and start learning natural consequences.

This!

My kids don't get control of their trust until they are 37 - when spending habits are established and maybe they need tuition for their kids

My kids do, but they would let me handle it as I am the one who got it for them in first place. We are already working together and deciding where to invest. They are not money hungry crazies. They want to buy nothing, but a few roblux here and there.

[Anonymous]

Are you using 4 $ to symbolize an extremely expensive car? Or do they just want a regular-ish car? I’d help them select the car, explaining how taxes and insurance work so they understand the wisdom of getting a reasonably priced car, and let them use the money early.

My parents set up trust funds for my son and his cousins. My son is the youngest so I’ve been able to benefit from watching what my siblings did. They decided to let their kids buy cars after turning 16. Surprisingly, 2/3 kids chose not to buy a car. The one who did got something sensible and saved a big chunk of money for life after college. I think my siblings really benefited from not making a big deal about getting a car—never turning it into an argument about control of the money. I think they found YouTube videos explaining car buying and ownership, and that was helpful.

[Anonymous]

What is it, a DeLorean?

[Anonymous]

Anonymous wrote:What genius set up such a trust?

According to my financial advisor, MOST people. I was stunned. He said the majority of trusts turn over to an 18 year old.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What genius set up such a trust?

According to my financial advisor, MOST people. I was stunned. He said the majority of trusts turn over to an 18 year old.

And then what, are gone by 19?

[Anonymous]

Anonymous wrote:I’m not sure where to post this.

Teen with trust fund wants $$$ to buy their first car within the next three months. Trust fund will transfer completely to teen in about 12months. If you were trustee, what would you do?

Like he’s asking the trustee for a distribution of the car money? Or he’s asking you for the car money, but he’s about to have this trust he could use?

If it’s the former, the trustee should just read the trust documents and act in good faith. If the terms are broad enough to include a distribution for a car, I see no point in waiting 12m.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What genius set up such a trust?

According to my financial advisor, MOST people. I was stunned. He said the majority of trusts turn over to an 18 year old.

Bullsh-t. Percentage at 18, more at 25, more at 40, more reserved to generation-skip.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What genius set up such a trust?

According to my financial advisor, MOST people. I was stunned. He said the majority of trusts turn over to an 18 year old.

I love how the stupidest people have the most money.

[Anonymous]

Who set this up? Was it the grandparents? Way to mess up their grandkids.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What genius set up such a trust?

According to my financial advisor, MOST people. I was stunned. He said the majority of trusts turn over to an 18 year old.

Bullsh-t. Percentage at 18, more at 25, more at 40, more reserved to generation-skip.

Why not just say, “I think your advisor is mistaken” or “That’s not what I’ve heard”? This sort of hostility seems a bit unhinged.