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[quote=Anonymous]FYI, OP, for the future: Can't speak to k-12, but trusts, including irrevocable trusts in the minor/beneficiary's name, are considered available assets for college financial aid determination. Given it is the student's asset, a larger percentage of the trust's value will be considered available for college expenses, likely reducing or eliminating financial aid eligibility. Given the value of the trusts being discussed, it is highly unlikely your minor(s) would qualify for any need-based financial aid. Almost all trust funds are counted in the financial aid process, and as an asset of the child in question, they would be subject to anticipated high rate of utilization.

In other words, even if you manage to avoid using funds from the trust for k-12 education, keep in mind they would be subject to disclosure and consideration in the financial aid process for college.

If you and your spouse are in a position to fully pay for college WITHOUT having your student's trust come into play, then this doesn't matter (e.g. can cover without financial aid - don't need to apply for it anyways). But if you were banking on, or need, financial aid for college... be forewarned. College financial aid offices are highly unlikely to exempt trust funds (with HEMS standard) from aid calculation consideration under any circumstances.

[think about it this way...otherwise everyone would put their assets into a trust that disburses to a child post-college graduation and thus their kid could qualify for aid, right?][/quote]

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