Irrevocable Trusts impact on FA?

[Anonymous]

Hey I got news everyone - it's the professionals push that we should subsidize FA with the fund. Not us. That's why I'm asking!

Seriously - $1M is not a lot of money. If we tap it for 6 yrs of school + college, they have very little at age 25. The question is whether we should tap it for education at all given that we are receiving FA. The banks tell us we should most definitely protect the money as much as possible but still use it if it takes the pressure off us financially as there is actually a reason we receive FA. Even with FA, we struggle. It's not like we are millionaires. I like how you all think it's our money but it isn't. We would really like our kids to benefit as much as possible with it. However it's education and kinda the definition of benefit at this time. I think if any of of you were in this our position you would be wrestling with whether to use it on education or not, it's much easier to sit in judgement, I get that.

And to the idiot that wonders ow I know my kids are beneficiaries since I was estranged from my mom - hey Sherlock - as guardian of the beneficiaries, I'm legally bound to be told. You are a moron for even asking this question! We do have to find a 3rd party Trustee long-term once the estate is settled thus we are not in control of any of this money but hey, according to these "professionals," we should leverage the fund to our benefit as a family.

I will no longer be reviewing this thread as none of you have experience obviously.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

It’s insane to me that a family who has $2M to be used for solely for education thinks they are still entitled to FA.

Exactly

+1 this is obscene

+1000

Financial aid is not for kids who have $2M in the bank. The trust explicitly says it can be used for education - use it!

[Anonymous]

Anonymous wrote:Hey I got news everyone - it's the professionals push that we should subsidize FA with the fund. Not us. That's why I'm asking!

Seriously - $1M is not a lot of money. If we tap it for 6 yrs of school + college, they have very little at age 25. The question is whether we should tap it for education at all given that we are receiving FA. The banks tell us we should most definitely protect the money as much as possible but still use it if it takes the pressure off us financially as there is actually a reason we receive FA. Even with FA, we struggle. It's not like we are millionaires. I like how you all think it's our money but it isn't. We would really like our kids to benefit as much as possible with it. However it's education and kinda the definition of benefit at this time. I think if any of of you were in this our position you would be wrestling with whether to use it on education or not, it's much easier to sit in judgement, I get that.

And to the idiot that wonders ow I know my kids are beneficiaries since I was estranged from my mom - hey Sherlock - as guardian of the beneficiaries, I'm legally bound to be told. You are a moron for even asking this question! We do have to find a 3rd party Trustee long-term once the estate is settled thus we are not in control of any of this money but hey, according to these "professionals," we should leverage the fund to our benefit as a family.

I will no longer be reviewing this thread as none of you have experience obviously.

You decided that paying for private school was worth it and were making it work, with a lot of financial aid, even though it was tight. Now you want to argue that the trust funds should be preserved for your kids when they turn 25 and not used for their current education? You should use that money to cover the FA you are getting. Maybe even a portion of what you are spending so that things are not so tight for you. It doesn't have to pay the whole amount but your kids should not be getting FA when they have one million dollars waiting for them.

[Anonymous]

Also you should use the trust to make a donation to pay back the FA you took. Why not be generous since it helped you... someone else *is* in your boat without the millionaire kids.

[Anonymous]

This is why nobody talks about money. Do what you need to do for your family, OP.

- Full pay parent

[Anonymous]

Anonymous wrote:Hey I got news everyone - it's the professionals push that we should subsidize FA with the fund. Not us. That's why I'm asking!

Seriously - $1M is not a lot of money. If we tap it for 6 yrs of school + college, they have very little at age 25. The question is whether we should tap it for education at all given that we are receiving FA. The banks tell us we should most definitely protect the money as much as possible but still use it if it takes the pressure off us financially as there is actually a reason we receive FA. Even with FA, we struggle. It's not like we are millionaires. I like how you all think it's our money but it isn't. We would really like our kids to benefit as much as possible with it. However it's education and kinda the definition of benefit at this time. I think if any of of you were in this our position you would be wrestling with whether to use it on education or not, it's much easier to sit in judgement, I get that.

And to the idiot that wonders ow I know my kids are beneficiaries since I was estranged from my mom - hey Sherlock - as guardian of the beneficiaries, I'm legally bound to be told. You are a moron for even asking this question! We do have to find a 3rd party Trustee long-term once the estate is settled thus we are not in control of any of this money but hey, according to these "professionals," we should leverage the fund to our benefit as a family.

I will no longer be reviewing this thread as none of you have experience obviously.

Excellent rationalization, OP. You can now count yourself among those who think a family making $400k/yr should get FA.

So are you going to lie to your school about how much tuition your family can afford to cover? That’s also a good look.

[Anonymous]

Anonymous wrote:OP, talk to a professional. This is not the forum for sound advice who thinks nobody deserves FA and I mean nobody. I've seen posts on here from families who live in poverty looking for opportunity for their kids being told to attend public because no one gives that much FA and they wouldn't fit in with rich kids and people who are upper middle class who are told to attend public and people with over 200K HHI told to pay full.

Cool story. And how about people who have $2m specifically earmarked for education? Should they get FA?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The FA form will ask about this but if your kids don't have access to these funds before the age of 25 (did I read that right?!) then no, it should not count against FA. 1 million is not a lot of money, they need to invest those funds so they have a comfortable adulthood like OPs mom wanted for them.

It’s insane to me that a family who has $2M to be used for solely for education thinks they are still entitled to FA.

Exactly

+.

-financial aid family

[Anonymous]

Anonymous wrote:There is no way for the trust money to show up on your tax bill; it is separate from your net worth.

The trust management folks you spoke to are correct.

Sounds like fraud to me

[Anonymous]

I meant +1

OP would have to lie and not disclose the trust to be able to continue to get the aid. It's asked about every year when re-applying.

[Anonymous]

Anonymous wrote:I meant +1

OP would have to lie and not disclose the trust to be able to continue to get the aid. It's asked about every year when re-applying.

It's just a little harmless white collar crime. I'm sure the trustee would admit that they instructed OP to lie

[Anonymous]

It's not OP's money. It belongs to her children. I don't understand all the pearl clutching.

[Anonymous]

Anonymous wrote:It's not OP's money. It belongs to her children. I don't understand all the pearl clutching.

There are questions about assets including trusts where the children are beneficiaries. From TADS:

"All corporate, partnership, and trust tax forms if a Parent/Guardian owns 20% or more interest in a corporation or partnership, or if any member of the household owns 20% or more interest in a trust"

"Contributions to Education (2024–2025) Enter the amount you can realistically contribute from the following sources torwards the education ofthe children on this application ... Other Sources"

[Anonymous]

And it’s for their education.

I get trying to get FA and the trust money. More money! But as a (former??) FA family, OP should have some perspective. Though she has been in the private school world and the entitlement runs strong there.

[Anonymous]

Anonymous wrote:It's not OP's money. It belongs to her children. I don't understand all the pearl clutching.

If an orphan were worth $10m, you’d be copacetic with contributing to the kid’s full ride scholarship?

This thread is really causing me to reconsider the amount I contribute to our school’s annual fund.