<p>Thanks for all the info. </p>
<p>I think the trust fund idea is too complicated for our situation. I have been talking with my "financial guy" who helps with IRA's insurance etc... (who luckily has kids going to college in a few years so takes a real interest in this ;) ).</p>
<p>It looks like niether the Elderlaw Attorney we worked with or myself looked far enough ahead when we did this to see the effects on the EFC.</p>
<p>It appears that our best option might be to put the money into a Universal Life Incurance plan that I have had for about 25 years. This was taken out before many of the rules were changed on these products in the late 80's. I would be able to put as much as I want in, but the amount of insurance must be adjusted too. This seems like it would work well financially (see below). My only question is does the "cash value" of life insurance ever count towards assets?</p>
<p>The $$$ of it are like this;</p>
<p>To put in 100K - have to buy 500K more insurance</p>
<p>5% upfront load, but it currently pays a 5.5% return after the cost of insurance, which compounds tax free until withdrawn.</p>
<p>Money is currently in CD's for liquidity if needs and saftey of principal @ 5% - about 4% after tax.</p>
<p>Money can be borrowed against the cash value at a net rate of about 2.5% - pretty cheap! Or cash vlaue can be taken out anytime with no load at all.</p>
<p>This means the "load" would be paid back after about 3 years, the money would be sheltered for EFC purposes, I would have 500K more insurance and a good source of cheap loans.</p>
<p>Doing this would put our EFC back at about $3500 instead of $16500, so quite a difference!</p>
<p>Where do any of you see the flaws in this plan? Its always good to have other views too!</p>
<p>thanks,</p>
<p>dj</p>