Reply to Irrevocable Trusts impact on FA?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]We currently are FA family with 2 kids in private MS.  My mom who I was estranged with recently passed and listed my 2 kids - her only grandkids as the only beneficiaries to collect the fund at age 25.  The money is not for us - is for them upon turning age 25 but with the exception of medical, educational and well being care, funds are able to be withdrawn upon the discretion of a 3rd party Fiduciary.

From what I've read online, irrevocable trust assets will impact FA because it's seen as family money.  However, the 2 Trust management 3rd party orgs I've spoken with sounded like FA is something that can still work for us.  I wasn't sure if they were just saying that as a sales technique for us to sign on with them or if anyone has had experience with this, would love to know.

We aren't a well to do family and again, the money will be held by a 3rd party to determine funds for our kids but for education, it could help us quite a bit.  Wasn't sure however if we used it, we'd use every penny!  [/quote]

You should spend some money on a lawyer to resolve your questions, not rely on any advice you get here. Just because the trustee may have the authority to pay for the beneficiaries education, it does not mean that the trustee will or should do so. A trustee might reasonably ask why your children should start paying for their education, when you have been able to do so up to now with the benefit of FA.[/quote]

Or the trustee could agree that the money should be used. So that the schools financial aid could go to people that actually need it. Not many kids have 1+ million available to them at 25.[/quote]

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