Trust fund and FA

calmom
Tue, 21 Jul 2009 23:09:36 +0000

Let me make it very clear… having full need met is far more prevalent than you think it is.

It’s not prevalent enough to justify anyone being idiotic enough to “spend down” the trust which is what was proposed in the opening post, and which you seem to endorse in post #2. That’s more than enough money to pay for a year at a public university – and, combined with loans and the student’s own earning capacity, its probably good for 2 years.

And you don’t seem to have even acknowledged the point I raised in my post #7 about the ex-husband’s role in all of this. If the guy digs in his heels & refuses to fill out forms, or if he has money he is unwilling to contribute, the kid will find himself shut out of the financial aid system at most private colleges, and at many publics.

I don’t know what your “experience” really is: but I have a legal education. And it would very clearly be a violation of the parent’s fiduciary duty as a trustee for her son if she were to do anything other than do her best to conserve those assets for college, which is what the trust was created for. Moving it to a 529 account, if possible, might be an excellent idea. Spending it down… really, really stupid. Anyone who advises otherwise simply is dead wrong.