Reply to Irrevocable Trusts impact on FA?

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[quote=Anonymous][quote=Anonymous]Hey I got news everyone - it's the professionals push that we should subsidize FA with the fund.  Not us.  That's why I'm asking!

Seriously - $1M is not a lot of money.  If we tap it for 6 yrs of school + college, they have very little at age 25.  The question is whether we should tap it for education at all given that we are receiving FA.  The banks tell us we should most definitely protect the money as much as possible but still use it if it takes the pressure off us financially as there is actually a reason we receive FA. Even with FA, we struggle.  It's not like we are millionaires.  I like how you all think it's our money but it isn't.  We would really like our kids to benefit as much as possible with it. However it's education and kinda the definition of benefit at this time.  I think if any of of you were in this our position you would be wrestling with whether to use it on education or not, it's much easier to sit in judgement, I get that.

And to the idiot that wonders ow I know my kids are beneficiaries since I was estranged from my mom - hey Sherlock - as guardian of the beneficiaries, I'm legally bound to be told. You are a moron for even asking this question!  We do have to find a 3rd party Trustee long-term once the estate is settled thus we are not in control of any of this money but hey, according to these "professionals," we should leverage the fund to our benefit as a family.

I will no longer be reviewing this thread as none of you have experience obviously.[/quote]

On the not so off chance you check this thread.  The income on $2m should more than pay for 80% of your educational costs this year, if you take a 4% drawdown - and if it's invested in Index Funds (that have an average annual return of at least 7% for an S&P ETF), you would have money still accruing.  Since you were already paying 60% (you said FA covered 40% in past years), you would end up saving about $40k annually.  Or you could continue to pay for 50%, save $10k and your kids' trusts would grow even more.

Speak with a financial planner and a lawyer.  Speaking as a lawyer, don't trust the advice you receive from companies trying to sell you a service.[/quote]

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