Anonymous
12/24/2023 21:39
Subject: Re:529s for nieces and nephews
Anonymous wrote:Wow. You are a very kind aunt/uncle.
If you want to give equitably, do that. It’s your gift. As such, it’s your choice. No moral obligation to consider personal finances of the parents (which is none of your business anyway) unless you want to play the assumption/favorites game, which your prior posts do not sound like.
Give equitably or do not give at all.
Anonymous
12/24/2023 15:17
Subject: 529s for nieces and nephews
Anonymous wrote:Anonymous wrote:No, you give each child the same amount.
This, You will create a lot of unneeded animosity and resentment if it isn't equal. At any time the ones doing well could lose a job, have insane medical bills, go on disability or lose a spouse. It must be equal or you are going to cause more trouble than if you gave nothing to anyone.
+100
I work with an estate planning firm and while I know that wills and trusts and overall estate administration is far different than what the OP is talking about here, please note that it never - and I mean, NEVER - ends well when unequal amounts of funds, or even tangibles, are given to family members.
Anonymous
12/24/2023 14:27
Subject: 529s for nieces and nephews
Give equally
Anonymous
12/24/2023 13:12
Subject: 529s for nieces and nephews
Similar situation in my family, OP. We give to the niece/nephew whose parents do not have extra funds for 529s, but not the other set of niece/nephews.
Our family and family #2 have similar HHI’s which are easily 20x what family #3’s HHI is.
My feeling on this is that while we and fam 2 would just be swapping their $$ for ours (they would feel the need to reciprocate), fam 3 is not contributing more than a few hundred per kid/per year so it actually is moving the needle.
For context, though, we give about 3k/year, so while it’s not nothing, it’s not enough to fully fund college.
Our family and family #2 have similar HHI’s which are easily 20x what family #3’s HHI is.
My feeling on this is that while we and fam 2 would just be swapping their $$ for ours (they would feel the need to reciprocate), fam 3 is not contributing more than a few hundred per kid/per year so it actually is moving the needle.
For context, though, we give about 3k/year, so while it’s not nothing, it’s not enough to fully fund college.
Anonymous
12/24/2023 10:40
Subject: 529s for nieces and nephews
Anonymous wrote:I do know that one is a surgeon who makes about $900k a year and one is a private school teacher who makes about $60k.
The financial aid issue is not a factor if I own the 529.
It’s worth a conversation with them to see if they have college savings plans. I recently found out my very wealthy cousin and her husband never prioritized saving for college. Her kids, now adults and out of college, all have huge college loans. We assumed they paid for their colleges but they made them max out the loans because they made a lot but were terrible with money.
Anonymous
12/24/2023 08:53
Subject: 529s for nieces and nephews
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:I do know that one is a surgeon who makes about $900k a year and one is a private school teacher who makes about $60k.
The financial aid issue is not a factor if I own the 529.
That’s not how 529s work.
But it is
https://collegeplanningteam.com/new-fafsa-rules-create-grandparent-loophole-for-529-plans/#:~:text=Grandparents%20can%20maintain%20a%20529,grandchildren%20without%20impacting%20aid%20eligibility.
You do realize an aunt is not the grandparent right?
Man. Some of you are something.
“While a 529 owned by a grandparent (or other third party) for the student’s benefit has never been reported on the FAFSA, a withdrawal will no longer be considered untaxed income the student receives, meaning it will not negatively affect student aid.”
See where it says “(or other third party)”
That means a non-parent. That can mean grandparent. Or uncle. Or the mailman.
Anonymous
12/24/2023 08:53
Subject: 529s for nieces and nephews
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:I do know that one is a surgeon who makes about $900k a year and one is a private school teacher who makes about $60k.
The financial aid issue is not a factor if I own the 529.
That’s not how 529s work.
But it is
https://collegeplanningteam.com/new-fafsa-rules-create-grandparent-loophole-for-529-plans/#:~:text=Grandparents%20can%20maintain%20a%20529,grandchildren%20without%20impacting%20aid%20eligibility.
You do realize an aunt is not the grandparent right?
Man. Some of you are something.
“While a 529 owned by a grandparent (or other third party) for the student’s benefit has never been reported on the FAFSA, a withdrawal will no longer be considered untaxed income the student receives, meaning it will not negatively affect student aid.”
Anonymous
12/24/2023 08:50
Subject: 529s for nieces and nephews
Anonymous wrote:Anonymous wrote:Anonymous wrote:I do know that one is a surgeon who makes about $900k a year and one is a private school teacher who makes about $60k.
The financial aid issue is not a factor if I own the 529.
That’s not how 529s work.
But it is
https://collegeplanningteam.com/new-fafsa-rules-create-grandparent-loophole-for-529-plans/#:~:text=Grandparents%20can%20maintain%20a%20529,grandchildren%20without%20impacting%20aid%20eligibility.
You do realize an aunt is not the grandparent right?
Anonymous
12/23/2023 21:16
Subject: 529s for nieces and nephews
Anonymous wrote:Anonymous wrote:I do know that one is a surgeon who makes about $900k a year and one is a private school teacher who makes about $60k.
The financial aid issue is not a factor if I own the 529.
That’s not how 529s work.
But it is
https://collegeplanningteam.com/new-fafsa-rules-create-grandparent-loophole-for-529-plans/#:~:text=Grandparents%20can%20maintain%20a%20529,grandchildren%20without%20impacting%20aid%20eligibility.
Anonymous
12/23/2023 20:50
Subject: 529s for nieces and nephews
Anonymous wrote:In my family there were 3 kids. #1 ended up rich, #2 UMC, #3 middle class, divorced and then died young. #1 and #2 supported #3’s kids through high school and college, they lived with #2 and had cars and college from #1 (before 529s). It was the right thing to do and the other kids were fine with the cousins getting this money, the family was pretty close. However, #3’s kids had a hard time with the family dynamics, feeling like the charity case and jealous of wealthier cousins, and eventually cut ties after college graduation. No regrets about helping, but family relationships can be tough to navigate.
Family dynamics is a separate issue. They didn't cut off because of money, they cut off how they were treated.