$5M for college education
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Anonymous
Yes, definitely consult a lawyer to find a way to set up a trust so she won’t have access to all of it as soon as she turns 18. Yikes. |
Anonymous
| Get her a 24/7 on-call tutor! |
Anonymous
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Not clear if this is a legal requirement only to spend on education, or a moral one. If not a legal issue, consider:
a) defining 'education' broadly. (International travel aimed more at understanding than tourism), and b) setting up a trust for your kid's kids. (Imagine how liberating it would be for her in adulthood not to have to save for her own kid's education.). |
Anonymous
| If she's an academically driven and gifted student, start early to prep her for applying to HPSM, Columbia, Duke, Yale, etc. You're in a very lucky position to be able to afford the best-of-the-best education! |
Anonymous
OP, this is terrible advice. $250k buys you nothing. |
Anonymous
If you know so much, how much would OP need to donate? 1M? 3M? |
Anonymous
| The trust will state the terms of use and what happens to the leftover money. |
Anonymous
If this was true, Lori Laughlin and felicity huffman would have done this rather than what they did. |
Anonymous
DP here. $10M to top tier. |
Anonymous
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If it were me I'd put the principal into an interest bearing acct. right away, one can be very conservative with that amount, so say a 5% interest acct. Then I'd fund DD's education (private HS, college, grad school, private counselors and tutoring) with the interest earned while preserving the principal. DD can then later utilize that account for her own family and keep the cycle going. $5M if not touched for a year at 5% will throw off $250K interest. Of course OP would use some for private HS but there is still more than enough to do this.
$5,000,000 @5% in Yr 0 $5,250,000 Yr 1 $5,512,500 Yr2 $5,788,125 $6,077,531 $6,381,408 $6,700,478 $7,035,502 $7,387,277 $7,756,641 $8,144,473 |
Anonymous
| He probably thought there would be more grandchildren. Her kids can use the $. |
Anonymous
I don't know, maybe $25M gets you face time with the university president, which may help you? What I do know is that plenty of families at our private school would happily pay a $250k fee on top of full pay tuition to get our kids into our top choice, my family included. |
Anonymous
that's actually true for Harvard where i went. You need to be high six figures or seven. We couldn't afford that and out high stats kid was waitlisted |
Anonymous
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Lots of good advice here. A lawyer can help you. I would not make a donation. That just doesn't feel right. Colleges should love her for what she brings to them, so maybe use some of it to dabble in new and unique activities/endeavors as well as tuition, tutoring and a decent college advisor (don't think you need to drop 50k).
Also, spend some on college visits. That could be fun. I would do dorms but maybe buy a property when upperclassman. Invest rest for grad school or other educational activities later on or to be passed on to the next gen. So nice of Gramps to look out for her. |
Anonymous
Not nearly enough for most T20 schools |