Anonymous
10/20/2016 14:16
Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:We are just below $200,000 and I am not going to save for college. For us, it doesn't make any sense. I am making a trust that she will have access to after she graduates. That way she will still be eligible for maximum aid.
She will then be allowed to use a portion of the principal to pay off school. The rest will go towards rent.
So nice that you take pride in gaming the system. I'm sure alumni who donate to your daughter's future school would be thrilled to know they'll be supporting her trust fund.
And it won't work. The trust will have to be reported, either as an asset of the child or an asset of the parents. It's a stupid plan that will backfire....
I seem to remember reading that one problem with trusts is that value of the trust may be seen as available money. Even the student legally cannot liquidate it, the entire value may be seen as cash on hand. If it's in the parent's name, just a certain percentage is viewed as available cash. But its not hidden.
I may be wrong. But if anyone is relying on this plan, it's worth a careful double-check.
Usually what people do is put the trust in the hands of a third party and make sure the value of the trust is small at the time of the FASA. The second half is the attorney magic.
I see. That makes sense.
Anonymous
10/20/2016 13:15
Subject: if you're using private, are you saving enough for each child to go to any college?
I think you meant "choosing" private schools, OP
Anonymous
10/20/2016 12:17
Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:We are just below $200,000 and I am not going to save for college. For us, it doesn't make any sense. I am making a trust that she will have access to after she graduates. That way she will still be eligible for maximum aid.
She will then be allowed to use a portion of the principal to pay off school. The rest will go towards rent.
So nice that you take pride in gaming the system. I'm sure alumni who donate to your daughter's future school would be thrilled to know they'll be supporting her trust fund.
And it won't work. The trust will have to be reported, either as an asset of the child or an asset of the parents. It's a stupid plan that will backfire....
I seem to remember reading that one problem with trusts is that value of the trust may be seen as available money. Even the student legally cannot liquidate it, the entire value may be seen as cash on hand. If it's in the parent's name, just a certain percentage is viewed as available cash. But its not hidden.
I may be wrong. But if anyone is relying on this plan, it's worth a careful double-check.
Usually what people do is put the trust in the hands of a third party and make sure the value of the trust is small at the time of the FASA. The second half is the attorney magic.
Anonymous
10/20/2016 12:00
Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:Anonymous wrote:Anonymous wrote:We are just below $200,000 and I am not going to save for college. For us, it doesn't make any sense. I am making a trust that she will have access to after she graduates. That way she will still be eligible for maximum aid.
She will then be allowed to use a portion of the principal to pay off school. The rest will go towards rent.
So nice that you take pride in gaming the system. I'm sure alumni who donate to your daughter's future school would be thrilled to know they'll be supporting her trust fund.
And it won't work. The trust will have to be reported, either as an asset of the child or an asset of the parents. It's a stupid plan that will backfire....
You're right. I am going to go to my attorney, show him this post and demand a refund.
Anonymous
10/19/2016 16:12
Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:Anonymous wrote:Anonymous wrote:We are just below $200,000 and I am not going to save for college. For us, it doesn't make any sense. I am making a trust that she will have access to after she graduates. That way she will still be eligible for maximum aid.
She will then be allowed to use a portion of the principal to pay off school. The rest will go towards rent.
So nice that you take pride in gaming the system. I'm sure alumni who donate to your daughter's future school would be thrilled to know they'll be supporting her trust fund.
And it won't work. The trust will have to be reported, either as an asset of the child or an asset of the parents. It's a stupid plan that will backfire....
I seem to remember reading that one problem with trusts is that value of the trust may be seen as available money. Even the student legally cannot liquidate it, the entire value may be seen as cash on hand. If it's in the parent's name, just a certain percentage is viewed as available cash. But its not hidden.
I may be wrong. But if anyone is relying on this plan, it's worth a careful double-check.
Anonymous
10/19/2016 15:39
Subject: Re:if you're using private, are you saving enough for each child to go to any college?
Yup. We sent 2 to private and are now sending them to private college. Full freight. Retirement secure. We are big savers and were lucky to buy our house many years ago.
Anonymous
10/19/2016 08:33
Subject: if you're using private, are you saving enough for each child to go to any college?
Anonymous wrote:Anonymous wrote:We are just below $200,000 and I am not going to save for college. For us, it doesn't make any sense. I am making a trust that she will have access to after she graduates. That way she will still be eligible for maximum aid.
She will then be allowed to use a portion of the principal to pay off school. The rest will go towards rent.
So nice that you take pride in gaming the system. I'm sure alumni who donate to your daughter's future school would be thrilled to know they'll be supporting her trust fund.
And it won't work. The trust will have to be reported, either as an asset of the child or an asset of the parents. It's a stupid plan that will backfire....