Reply to Irrevocable Trusts impact on FA?

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[quote=Anonymous][quote=Anonymous]Good grief. Most people have no clue what they are talking about and the sheer nonsense is hilarious because I'd wager most people in a similar position would be asking the same question.

Without looking at the trust, it became irrevocable upon the mother's death. Pursuant to what the OP posted, the terms of the trust state that the children will receive their money inheritance when they turn 25. It isn't the children's money until they turn 25, it is the trusts. Further, there appears to be what is know as a HEMS standard (distributions can be at the discretion of the trustee to maintain the beneficiaries health, education, maintenance and support). It is not an "education" trust because an education trust would spell out that the funds are to be used for education for the beneficiaries. But, instead it is up to the reasonable discretion of the trustees on whether to make a distribution for education.

Thus, the trustee is doing exactly what the trustee should be doing when they have a fiduciary duty. And remember, the trusts goal (according to the OP) is to turn over funds to the GC when they turn 25. Thus, the trustee is asking the OP to take the correct action by asking the OP to file for financial aid and insert all the information requested. If questionnaire asks about "discretionary" irrevocable trust information, then you supply it. If it doesn't, you don't and let the school make the determination on whether OPs kids are eligible for financial aid or not.

If the school decides to provide financial aid that is fine. If the school doesn't provide aid because of the trust information was supplied (or not supplied), OP goes back to trustee and says they'd like the trust to make a distribution to continue the maintain the GC at their current school. The trustee can then make the call or not to make a distribution. Or, the OP can forget about it and pull their kids.

The fact any poster on here is outraged about this question is amusing to say the least.[/quote]

If you think OP/your/trustee's approach is perfectly fine and not worthy of outrage, then OP should have the guts to be open about the trust and the approach they are taking with financial aid.  Because, surely, the non-amusing people will completely understand.[/quote]

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