Irrevocable Trusts impact on FA?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The private schools are 100k+ for a year of tuition for both. The Fund totals about $1M currently for each kid. Obviously want to grow and keep for for them till they reach age 25 to take. At $100k a year for 6 more years and 4 more years each not incl college, that just seems a ton of spend! Our FA provides for 40% right now of the tuition total.

The Trust fund people seem to feel that we can keep FA and supplement a bit more via fund if we wanted to help our finances.

I wasn't sure if FA negates our opportunity to do that in total?

We are a full pay family of two that sacrifice significantly to afford private school. We also contribute to the school so that funding is available to families who need it. As a barely able to afford it full pay family I am appalled at your attempt to hide the money so we and other families can pay for you when there are others who really need the money and for your kids to walk out with $1 million each at others expense. Shame on you.

See posts above. It’s not the kids’ money yet, and it’s certainly not the parents money.

Honest question: Can I set up a trust for my kids to put the money in my bank to it? Will my child get more FA?

[Anonymous]

Anonymous wrote:

Anonymous wrote:People are conflating what OP can afford vs what her children can afford.

The estate is not the child’s asset. It’s in trust: not an asset.

Good luck OP. Their windfall shouldn’t mean you have to pay more than you would have had to. If you were planning to pay/ that is.

Not true. It’s set up to pay for education

.

Which part of what I said is not true?

It’s not the kids call as they are under 25. The trustee can deny it as one with a good sense of fiduciary duties would do/ if it would mean protecting the trust

[Anonymous]

We are a couple who make less than 130,000 but have a family trust. When we filled out the FA forms for first child going to college, there was a question that asked about funds that weren't accounted for elsewhere in our forms. We disclosed the trust as we were instructed to do by our financial advisor. We did not receive any financial aid. We did not fill out financial aid forms for second child.

[Anonymous]

I LOVE how judgmental RICH people are who hire people to show them ways to avoid paying their fair share of taxes!

Oh please! To the OP, don’t listen to these hypocrites. Continue to grow money for your children’s future, answer the question honestly if asked about trust funds, if they still give you money, take it!

[Anonymous]

So I should have taken my kids college funds and put them in a trust only available at 25 and then gotten aid?? Is this truly an option for all?

[Anonymous]

Anonymous wrote:I LOVE how judgmental RICH people are who hire people to show them ways to avoid paying their fair share of taxes!

Oh please! To the OP, don’t listen to these hypocrites. Continue to grow money for your children’s future, answer the question honestly if asked about trust funds, if they still give you money, take it!

Agreed. These are the same people who if you said you had a million saved for retirement would be like: that’s NOTHING you are SCREWED yet a million in trust for kids education instantly makes them l”rich trust fund brats”. These are the same people who will take advantage of every tax loophole and make it out like you’re a jerk for asking a legitimate question. If I could protect my kids trusts to ensure them having money to buy a home or start a business? You bet I would. The accusation that they’re taking FA money from other kids is absurd/ we have a problem in this country because they give out financial aid like candy. I’m surprised you’re not also criticizing the kids for “taking a spot” from a FA kid if they go full pay which makes them more attractive.


Lesson here? Don’t bring up trusts of family money on this board unless you have incredibly thick skin. The vipers can’t STAND IT.

I’ve learned to never ever mention my trusts or my kids trusts/ there is a special kind of hatred for those whose parents are able to gift while alive/have benefitted from the work of their family.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I LOVE how judgmental RICH people are who hire people to show them ways to avoid paying their fair share of taxes!

Oh please! To the OP, don’t listen to these hypocrites. Continue to grow money for your children’s future, answer the question honestly if asked about trust funds, if they still give you money, take it!

Agreed. These are the same people who if you said you had a million saved for retirement would be like: that’s NOTHING you are SCREWED yet a million in trust for kids education instantly makes them l”rich trust fund brats”. These are the same people who will take advantage of every tax loophole and make it out like you’re a jerk for asking a legitimate question. If I could protect my kids trusts to ensure them having money to buy a home or start a business? You bet I would. The accusation that they’re taking FA money from other kids is absurd/ we have a problem in this country because they give out financial aid like candy. I’m surprised you’re not also criticizing the kids for “taking a spot” from a FA kid if they go full pay which makes them more attractive.


Lesson here? Don’t bring up trusts of family money on this board unless you have incredibly thick skin. The vipers can’t STAND IT.

I’ve learned to never ever mention my trusts or my kids trusts/ there is a special kind of hatred for those whose parents are able to gift while alive/have benefitted from the work of their family.

The financial aid that they "give out like candy" at private K-12 schools comes directly from the other generous families at the school. I am not interested in donating to someone who CHOSE private school, can easily pay for it, and chooses not to. There is a certain amount of FA, and absolutely this situation is taking away from another family who has less.

And it is unclear who you hate here. The rich people? You and your children have trusts. You and your family worked for that money, but the other rich people didn't? Please. Family money is great. Just don't pretend you are poor when you have it. Don't ask other people to pay for their K-12 education because you would rather give them the money when they're adults. Maybe they want to give their own children $1M instead of supplementing the expenses you chose.

[Anonymous]

I don’t hate anyone.

I just find the hypocrisy of DCUM when it comes to trusts really funny.

Post about leaving a trust for your kids tons will chime in. Everyone here is suddenly massively wealthy.

Post about your kids or you receiving annual gifting or a trust and be prepared to hear about “trust fund brats” and how you’re a freeloader.

It’s like everyone wants to be a big shot, but gosh do they hate the big shots who came before them.

[Anonymous]

Pretty sure this is reparations money. Pay your way, Lady.

[Anonymous]

Anonymous wrote:

Anonymous wrote:People are conflating what OP can afford vs what her children can afford.

The estate is not the child’s asset. It’s in trust: not an asset.

Good luck OP. Their windfall shouldn’t mean you have to pay more than you would have had to. If you were planning to pay/ that is.

Not true. It’s set up to pay for education.

It sounds to me like there is a trust where $ will be transferred to kids at 25 - where parents are NOT the trustees. The trust "allows" for certain $ to be taken out before 25 with approval of the trustee. just because education and medical needs are two areas in which the trustee could consider releasing funds before age 25 does NOT mean the trust is set up for education and medical needs.

It is the parents decision to send their kids to private school and the parents should proceed as if they themselves will pay for the private school. The family should apply for FA. Whether or not the trustee will approve to pay the remainder is the decision of the trustee. If not, the parents are on the hook. Paying for private school is a parental choice, not the choice of the child.

[Anonymous]

Anonymous wrote:I don’t hate anyone.

I just find the hypocrisy of DCUM when it comes to trusts really funny.

Post about leaving a trust for your kids tons will chime in. Everyone here is suddenly massively wealthy.

Post about your kids or you receiving annual gifting or a trust and be prepared to hear about “trust fund brats” and how you’re a freeloader.

It’s like everyone wants to be a big shot, but gosh do they hate the big shots who came before them.

I understand where you are coming from - but in this situation - the kids in question and the OP did not set up a trust to shield/hide money. The estranged grandparent set up the trust for the kids - skipping the generation of their parent. Sounds more like a toxic situation to me than a situation where rich parents are hiding money to game the system.

[Anonymous]

I really don't see why OP is confused. Private school tuition falls under "the exception of medical, educational and well being care" -- this is extremely common in trusts. OP, if your financial advisors are recommending that you not disclose this info, you are committing fraud, which is punishable by law. Get rid of your advisors and find some reputable ones. Yikes.

[Anonymous]

Anonymous wrote:Pretty sure this is reparations money. Pay your way, Lady.

Why?

Isn’t that the whole point of FA at private schools?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I LOVE how judgmental RICH people are who hire people to show them ways to avoid paying their fair share of taxes!

Oh please! To the OP, don’t listen to these hypocrites. Continue to grow money for your children’s future, answer the question honestly if asked about trust funds, if they still give you money, take it!

Agreed. These are the same people who if you said you had a million saved for retirement would be like: that’s NOTHING you are SCREWED yet a million in trust for kids education instantly makes them l”rich trust fund brats”. These are the same people who will take advantage of every tax loophole and make it out like you’re a jerk for asking a legitimate question. If I could protect my kids trusts to ensure them having money to buy a home or start a business? You bet I would. The accusation that they’re taking FA money from other kids is absurd/ we have a problem in this country because they give out financial aid like candy. I’m surprised you’re not also criticizing the kids for “taking a spot” from a FA kid if they go full pay which makes them more attractive.


Lesson here? Don’t bring up trusts of family money on this board unless you have incredibly thick skin. The vipers can’t STAND IT.

I’ve learned to never ever mention my trusts or my kids trusts/ there is a special kind of hatred for those whose parents are able to gift while alive/have benefitted from the work of their family.

Except you just did. I’m sure you’re scamming (or trying to scam) the process too.

[Anonymous]

Anonymous wrote:I don’t hate anyone.

I just find the hypocrisy of DCUM when it comes to trusts really funny.

Post about leaving a trust for your kids tons will chime in. Everyone here is suddenly massively wealthy.

Post about your kids or you receiving annual gifting or a trust and be prepared to hear about “trust fund brats” and how you’re a freeloader.

It’s like everyone wants to be a big shot, but gosh do they hate the big shots who came before them.

You lost me with this:

“ The accusation that they’re taking FA money from other kids is absurd/ we have a problem in this country because they give out financial aid like candy.”

If a family who can afford tuition takes FA, they are def taking that money from a child who needs it more. But you don’t seem to be on board with value of FA anyway, right?

Does your school have the same values you do?