Anonymous
Post 02/02/2024 13:23     Subject: Irrevocable Trusts impact on FA?
OP, talk to a professional. This is not the forum for sound advice who thinks nobody deserves FA and I mean nobody. I've seen posts on here from families who live in poverty looking for opportunity for their kids being told to attend public because no one gives that much FA and they wouldn't fit in with rich kids and people who are upper middle class who are told to attend public and people with over 200K HHI told to pay full.
Anonymous
Post 02/02/2024 09:44     Subject: Irrevocable Trusts impact on FA?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:The FA form will ask about this but if your kids don't have access to these funds before the age of 25 (did I read that right?!) then no, it should not count against FA. 1 million is not a lot of money, they need to invest those funds so they have a comfortable adulthood like OPs mom wanted for them.


It’s insane to me that a family who has $2M to be used for solely for education thinks they are still entitled to FA.


Exactly


+1 this is obscene


Agree. OP is def leaning into the private school mindset.
Anonymous
Post 02/02/2024 09:39     Subject: Irrevocable Trusts impact on FA?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:The FA form will ask about this but if your kids don't have access to these funds before the age of 25 (did I read that right?!) then no, it should not count against FA. 1 million is not a lot of money, they need to invest those funds so they have a comfortable adulthood like OPs mom wanted for them.


It’s insane to me that a family who has $2M to be used for solely for education thinks they are still entitled to FA.


Exactly


+1 this is obscene
Anonymous
Post 02/02/2024 08:58     Subject: Irrevocable Trusts impact on FA?
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?


Of course you do. But . . . should you be able to? Your kids each have $1m that can be used for education, and you want to conceal that fact so that they can continue to receive financial aid (which is designed for people who can't afford tuition - which you can).

I have no idea whether you will be able to do this or not - don't know anything about the FA process at private schools. But it is a bit of a character test for you, OP. Unfortunately, it looks like you're not scoring well on it.
Anonymous
Post 02/02/2024 08:51     Subject: Irrevocable Trusts impact on FA?
Anonymous wrote:OP you are also perfectly making the case for why the GOP push for “school choice vouchers” is a complete sham. Rich people will find a way to suck every penny out of the system, ethical or not. While people with less options and funds struggle.

Rich people are really the worst.

Stupid people aren't so great either. Your comparison is ridiculous. Vouchers would help those people with fewer options by giving them some options for higher performing schools.
Anonymous
Post 02/02/2024 08:25     Subject: Irrevocable Trusts impact on FA?
OP you are also perfectly making the case for why the GOP push for “school choice vouchers” is a complete sham. Rich people will find a way to suck every penny out of the system, ethical or not. While people with less options and funds struggle.

Rich people are really the worst.
Anonymous
Post 02/02/2024 08:22     Subject: Irrevocable Trusts impact on FA?
Wow. Of course the money should be used for their education. Let the people who actually need FA get FA.
Anonymous
Post 02/01/2024 22:35     Subject: Irrevocable Trusts impact on FA?
Anonymous wrote:
Anonymous wrote: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!


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.


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.
Anonymous
Post 02/01/2024 22:31     Subject: Irrevocable Trusts impact on FA?
Anonymous wrote:
Anonymous wrote: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!


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.


Hopefully that's not the choice. Hopefully the choice will be that the trustee coughs up the money, or the family figures out how to pay tuition without FA.
Anonymous
Post 02/01/2024 22:24     Subject: Irrevocable Trusts impact on FA?
Anonymous wrote: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!


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.
Anonymous
Post 02/01/2024 21:19     Subject: Irrevocable Trusts impact on FA?
Anonymous wrote:The FA form will ask about this but if your kids don't have access to these funds before the age of 25 (did I read that right?!) then no, it should not count against FA. 1 million is not a lot of money, they need to invest those funds so they have a comfortable adulthood like OPs mom wanted for them.


The trust says it can be used for education
Anonymous
Post 02/01/2024 21:11     Subject: Irrevocable Trusts impact on FA?
Anonymous wrote:
Anonymous wrote:The FA form will ask about this but if your kids don't have access to these funds before the age of 25 (did I read that right?!) then no, it should not count against FA. 1 million is not a lot of money, they need to invest those funds so they have a comfortable adulthood like OPs mom wanted for them.


It’s insane to me that a family who has $2M to be used for solely for education thinks they are still entitled to FA.


Exactly
Anonymous
Post 02/01/2024 21:11     Subject: Irrevocable Trusts impact on FA?
Anonymous wrote:The FA form will ask about this but if your kids don't have access to these funds before the age of 25 (did I read that right?!) then no, it should not count against FA. 1 million is not a lot of money, they need to invest those funds so they have a comfortable adulthood like OPs mom wanted for them.


It’s insane to me that a family who has $2M to be used for solely for education thinks they are still entitled to FA.
Anonymous
Post 02/01/2024 21:10     Subject: Irrevocable Trusts impact on FA?
Anonymous wrote:The FA form will ask about this but if your kids don't have access to these funds before the age of 25 (did I read that right?!) then no, it should not count against FA. 1 million is not a lot of money, they need to invest those funds so they have a comfortable adulthood like OPs mom wanted for them.


The funds can be used for education before 25. So they should be.

You think it's okay for other families' donations to pay the kids tuitions when they have funds available for education?
Anonymous
Post 02/01/2024 21:10     Subject: Re:Irrevocable Trusts impact on FA?
My kids grandparents are paying private school tuition. They could put all the money in an irrevocable trust and have us apply for financial aid so they can give them the money later but that feels like making other people pay when you could do it. We donate to the school to help those who need aid go to the school. If I thought all those financial aid kids were sitting on a million with compounding interest while our extended family was paying our way and for them, I don’t think I’d be donating to financial aid. And I say that as someone who needed and received financial aid in college.