<p>To Calmom regarding Post #68: WOW!! Well said. I appreciate your insight and the clarity you bring to our difficult situation. You understand our challenge. </p>
<p>I have done a poor job of communicating on here. Let me make a couple of statements to all:</p>
<p>1) I agree that the trust fund is better for my D than no trust fund!
2) I am sorry for some of my harsh criticisms of those who have not offered what I deem to be constructive assistance
3) I truly do appreciate the advice I am receiving in this thread.</p>
<p>To Thumper regarding Post #70: Please take the harshness out of your e-mail. As for what we would have done without the trust? We would have contributed each year as has been planned. The problem is I don't want my daughter's trust to be eaten and I don't want my EFC to be increased. </p>
<p>I am not implying that it should not be "considered;" however, I don't want it to be considered at 20% annually. </p>
<p>The fact that you "take offense" tells me you have other issues you should check within yourself.</p>
<p>To Chedva regarding Post #71: Thank you. I hadn't thought of what you spoke. You are correct. It is very complicated and we will be sitting with a CPA and attorney to go over in detail. This is very helpful.</p>
<p>1) My daughter lives with my ex-wife. I am the non-custodial parent. Several of the schools my D is considering are non-profile schools. Thus, my assets won't matter to them. </p>
<p>2) Who said I cannot contribute sufficiently to my D's education? I didn't. You ASSUME that because I don't want my contributions to increase because of untouchable monies in trust to her, that I cannot sufficiently contribute. You know what "they" say about assumptions right?</p>
<p>3) The down payment of my second home was purchased with equity from my first home three years ago. The town in which the condo is located has had some troubling, unforseen issues regarding fire code. This, coupled with the challenges of the real estate market in general, have prevented the condo from gaining much of any equity since I've owned it. We are using rent from Summer renters to help offset the costs (rent, utilities, taxes, etc.).</p>
<p>To Thumper regarding Post #75: I did just that. I contacted Swarthmore College's Director of Finaid. She told me...too bad (in so many words). Unfortunately, Swarthmore College will consider up to 35% of my D's assets per year. They don't care about the Fed's calculations. </p>
<p>To LindaCarmichael regarding Post 78: Let me try to clear some of this up:</p>
<p>The house was willed to my D in living trust to my ex-wife until my D turned 35. Because of outstanding equity loans and other expenses, my ex cannot hold onto the house. It must be sold. The Executrix who set up the trust, enabled my D to have access at 25 instead of 35, since it became cash and she would not be inheriting the property. </p>
<p>As for the what if she received the trust at 18...what does this change? EVERYTHING. She would have access to the funds to disperse to colleges as she deemed fit. Between my contributions and her funds she could go to any school she'd like without having to take any loans. </p>
<p>Patch--I didn't assume you couldn't pay more. It sounds like you can, as you say.</p>
<p>It sounds like the house is only an issue at nonProfile schools. At Profile schools like Swarthmore, your ability to pay will raise your EFC so that the house may make little or no difference. That was the point I was trying to make.</p>
<p>As you say, it's only non-Profile schools which will ignore your assets, but most of them gap, anyway.</p>
<p>Patch -- You are in a pickle, no doubt of that. But if she did have the funds at 18 and spent them on college, does that not go against the grain of the inheritance which was not supposed to be spent on college?</p>
<p>If the Executrix could change 35 to 25, seems to me other things could be changed. And if the house was supposed to be your ex W's til D was 35, can't the trust be W's until D is 35??</p>
<p>Can your daughter give back the inheritance to the estate?</p>
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<p>As for the what if she received the trust at 18...what does this change? EVERYTHING. She would have access to the funds to disperse to colleges as she deemed fit. Between my contributions and her funds she could go to any school she'd like without having to take any loans.<<<</p>
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If the Executrix could change 35 to 25, seems to me other things could be changed.
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<p>I was thinking the same thing. Apparently the Executrix can make changes. There no longer is a house, the age that your D was to inherit was changed from 35 to 25, so why can't the Executrix make other reasonable changes? Is this being avoided so that your D has the money intact after she graduates? I do understand that you would want to try to accomplish that for her.</p>
<p>patch in one breath you say,"As for the what if she received the trust at 18...what does this change? EVERYTHING. She would have access to the funds to disperse to colleges as she deemed fit. Between my contributions and her funds she could go to any school she'd like without having to take any loans."</p>
<p>Then in the other you say," I am trying to find a way to preserve her trust,"</p>
<p>if the first is true, then as Linda says you can work with the Executrix. Show her the implication of money available at 25. You can say that she will not get any aid because every year the schools will count 35 K as her contribution, and it could very well lead to her not attending ANY college. </p>
<p>Of course you can always borrow, and pay off the loans when money is available. If second is true then there is nothing much you can do. You can't have that 100 K sitting and waiting for her, while other people (tax payers or other alumni parents) pick up the tab.</p>
<p>northeastmom:
I get the impression that someone (grandma? executrix?) wants the money to be available for D after she graduates from college.
And to this I say: start over and view the inheritance as: "Someone just gave you 100K to pay for college. Enjoy."</p>
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<p>Is this being avoided so that your D has the money intact after she graduates? I do understand that you would want to try to accomplish that for her.<<<</p>
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<p>If D really wants an inexpensive college education, it is available. The first two years can be accomplished at a junior college, and the last two can be completed at an affordable in-state public college. And then when D is 25, she has 100K for grad school.</p>
<p>Just some thoughts on this interesting situation. </p>
<p>I would be quite surprised if an 18 year old with $100K in trust could not find a way to borrow $20k a year for 4 years. I don't see why a parent has to be on the loan if the trust is collateral. It's simply about not wanting to spend found money and nothing else. There is no sympathy to be had.</p>
<p>Bandit has summed this up in a nutshell. If this were the case of the OP not wanting to spend "found money" then I would have little sympathy as well. However, this is a case of an asset that was intended to be passed intact to the daughter in due time. Everyone involved knew it was there and apparently agreed that it would be transferred within the family at a given time. </p>
<p>Due to certain circumstances, at least some of which were beyond the OP's control, the house had to be converted to cash. Somewhere along the line, someone other than the OP or his daughter made some decisions that had the unintended consequence of putting the cash in a place where it would be considered as an available asset for paying for college, thus reducing the amount of grant aid she would likely receive from certain schools. Had things been done properly from the start, perhaps it all could have worked out as everyone had hoped. To the OP and his daughter, this probably looks a lot more like "lost money" and asking for advice on how he might legally preserve what is left of it is not such an unreasonable thing to do.</p>
<p>Thanks to all with the helpful suggestions. </p>
<p>Bandit: Who sd I'm looking for sympathy? I am not. I have made my points. Many on here seem to understand about what I speak. There are a few, like you, who seem to have some bitterness over the fact that my daughter inherited a trust. I am sorry you feel that way. However, I'd like to request that you find another thread on which to post unless you have something constructive to add.</p>
<p>I don't think bandit or others who have posted 'frankly' are bitter. I think what people don't like is your desire to 'preserve' that capital - a new found capital. </p>
<p>Most people would take this as an opportunity to send their kid (with your help) to any school. Many here think in terms of opportunity rather than 'lost money'.</p>
<p>Would you have been this upset if the trust spelled out that the money can also be used for college expenses?</p>
<p>Think this as a Graqndma Memorial Fund Merit scholarship.</p>
<p>To Simba regarding Post #98: It feels like bitterness. Almost like I am saying "Let them eat cake." I am not rich and am not whining. I have made my points clear. If people don't get it by now...I don't know what else to say.</p>
<p>If the trust had been setup so that my daughter could access the funds, I would NOT be as upset. For her not to have access but for it to count as an asset (as far as Financial Aid is concerned) is the real issue. Of course if I can find a way to help her preserve as much of that trust as is humanly possible, I will do it.</p>