$$$ car for trust fund kid?

[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.

Agree. There is no way a “majority” turnover at 18. Forbes says the most common structure is payouts at 25, 30 and 35.

[Anonymous]

$20K is the price of a very basic, non-luxury vehicle, OP.

Why did you make us think the teen wanted to buy a Ferrari?

[Anonymous]

Anonymous wrote:$20k for a car is reasonable with today’s prices. You should have led with that, OP. You made it sound like the teen wanted to blow their trust on a Ferrari.

NP
That was my assumption too and I could see op was in a tough bind but given this new info, op is slightly a jerk to consider being a roadblock

[Anonymous]

If you’re not sure and you have the option to ask a judge I would, personally, but you really just need to look at the specific documents that are supposed to be governing you.

[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’d get a new advisor.

[Anonymous]

A used$20k car or brand new under warranty $30-40k Honda, say, that won't need a tuneup for 100,000 miles and can be kept 10 years easily?

[Anonymous]

I think $20K is low for a car if they need one.

[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?

I assume you are responsible for remitting reasonable expenses.

If it's a minor with a legal guardian, follow the advice of guardian. They may prefer a loan (even if it gets laid off shortly after initiation).

If it's an adult, do you have any right to withhold the funds? Buying a car is within the realm of normal expenses. Get info on how much the car costs exactly, and write a check to the seller.

[Anonymous]

Anonymous wrote:

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?

I assume you are responsible for remitting reasonable expenses.

If it's a minor with a legal guardian, follow the advice of guardian. They may prefer a loan (even if it gets laid off shortly after initiation).

If it's an adult, do you have any right to withhold the funds? Buying a car is within the realm of normal expenses. Get info on how much the car costs exactly, and write a check to the seller.

$20k. The car the kid wants costs $20k

[Anonymous]

Anonymous wrote:

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

That’s too old. Unless they can use the interest or the interest/principal yearly as needed.

Right? Long past college, creative peak, dating market, marriage and kids. Better than nothing, obviously, but that would be harsh.

[Anonymous]

Anonymous wrote:A used$20k car or brand new under warranty $30-40k Honda, say, that won't need a tuneup for 100,000 miles and can be kept 10 years easily?

Rich don't buy used cars full of unknowns.

[Anonymous]

Anonymous wrote:

Anonymous wrote:A used$20k car or brand new under warranty $30-40k Honda, say, that won't need a tuneup for 100,000 miles and can be kept 10 years easily?

Rich don't buy used cars full of unknowns.

Nonsense. I'm rich and I just bought a car that was built in 1956 and probably has 200,000 miles - if the odometer worked.

[Anonymous]

Anonymous wrote:
$20K is the price of a very basic, non-luxury vehicle, OP.

Why did you make us think the teen wanted to buy a Ferrari?

$20k is 4.4% of the trust fund ($450k). Maybe OP thinks it's too much and too early (at 18 years of age).

[Anonymous]

Anonymous wrote:

Anonymous wrote:
$20K is the price of a very basic, non-luxury vehicle, OP.

Why did you make us think the teen wanted to buy a Ferrari?

$20k is 4.4% of the trust fund ($450k). Maybe OP thinks it's too much and too early (at 18 years of age).

I’m super conservative about these things but sounds like the teen has a living parent and one that died who wasn’t married to the living parent , and thus the trust.

It is 4.4 percent but if the kid needs a car to get to school or work isn’t that kind of what the money is for? 450k isn’t enough to set the kid up for life, it’s just a really good start and it may need to be used for some things like educational expenses if the living parent can’t pay for them. I think the scenario where a kid has a trust because a parent has died is different from a situation where you have generational wealth and grandparents etc creating a trust.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$20k for a car is reasonable with today’s prices. You should have led with that, OP. You made it sound like the teen wanted to blow their trust on a Ferrari.

NP
That was my assumption too and I could see op was in a tough bind but given this new info, op is slightly a jerk to consider being a roadblock

Another NP. I assumed this as well. 20k is totally fine for a car for pretty much anyone not in a financial bind. 20k is not a "$$$" car in 2024. I assumed he was going to blow a big trust in one go on a Bugatti or something.