<p>Simba regarding Post #97: The trustee has not been cooperative to date. I have to investigate your suggesion on using it as collateral. If this can be done, it is an interesting option. Thanks.</p>
<p>To Simba...I meant regarding Post #100 in the prior e-mail.</p>
<p>"The trustee has not been cooperative to date."</p>
<p>May be she is trying to make a point on behalf of your Ex.</p>
<p>Approach her gently. May be by a mutually trusted person. Expalin that the way it is set up every year the colleges will expect her to pay 35 k every year - the money she does not have. You can only pay X and X does not even cover the cost of Rutgers.</p>
<p>However, if she changes the terms (and assuming trust does not grow): Year 1 - 35 k, year 2 - 22.75k, year 3-15 k, year 4 - 9.5k. Explain that you are willing to put X/yr, So with the money from the trust and your contribution she could go to Harvard without a problem (H-bomb is a good word to drop). In years 3 and 4 she would qualify and could get some money from Harvard.</p>
<p>To Simba regarding #103: Not bad advice. I like it. I will discuss with my D and ex and try it out. A sincere, "Thank You" to you.</p>
<p>If you need some help I found a great website that will help, with serveral things. No I don't make any money advertising, not that you'll believe me, but just check it out. If you don't like, no biggy, I tried.</p>
<p>college-student-deals.com</p>
<p>There is nothing wrong with posting the the question about how to preserve the trust or any assets for that matter. Many, many folks want to preserve assets and look for the best way to configure their assets in order to get the best financial aid package. That is the point of many college financial planning articles and books. Most of us know that putting money in a child's name often results in a disadvantageous situation, for instance. If grandparents or other relatives have resources they may turn over to a college aged student, it is only common sense that they wait until after college to do so, if it can affect aid. There are numerous ways to strategically place assets so that you do better in the financial aid process and that is just smart thinking as long as you are not doing something illegal. </p>
<p>I cannot answer the OP's question because I just don't know enough about trusts, and how they are viewed by colleges in terms of being assets considered the student's even if the money is not accessible at the time and for the purpose of college. I do know that it does not wash most of the time when a divorced parent refuses to pay for college when he has the assets to do so. The problem with allowing this situation to go under the aid radar, is that it then becomes the advisable way to go so that kids can get aid. Why should any divorced parent not say that he is not going to pay for college if that is a stipulation for getting aid? Any inheritance or trust can have that stipulation in it so that it can be preserved rather than going towards college costs. </p>
<p>However, there are ways that families do avoid having student assets being included for college costs. Money put into a student IRA or pension plan often does the trick. Having the parent hold the money so it does not count as heavily is another way. Spending it down is still another way. Telling relatives to hang onto the any money gifts and give them after graduation is still another avenue often taken. All legitimate. Lying and not telling the college about the money because it is hidden under your bed or otherwise not easily found from tax and financial statements is not legitimate and is fraud. </p>
<p>I would talk to someone who is a specialist in college financial aid processes and explain the situation. THere may or may not be a way to deal with this to reduce the impact on financial aid, LEGALLY. There are many ILLEGAL ways to cheat. Always are in any situation. I am assuming that is not the type of advice you are seeking.</p>
<p>To JSeeley69 regarding # 105: Thanks! I will check it out.</p>
<p>To cptofthehouse regarding Post 106: Your assumption is correct. I am not trying to cheat anyone. I am looking for legitimate ways to preserve her trust and minimize our EFC...it at all possible. </p>
<p>Thanks for your detailed response.</p>
<p>I agree with above posters. Your best bet is to talk to someone with experience in trusts, estates, and with some knowledge about college finances. If there is a way to shield at least some of this trust, they should be able to help. Has your former wife spoken to the person managing the trust? Perhaps that would be helpful as well. Maybe there is some way to either defer putting the trust in your daughter's name, or to (as mentioned above) change again the age at which it is awarded.</p>
<p>Exactly, thumper, and to take advice from posters who really are not specialists in trusts, and/ or financial aid to say too bad, just pay, is foolish. Perhaps something can be done to preserve the trust, at least part of it.</p>
<p>Patch,
I liquidated my D trust this year because of the same problem. When it was set up, it says she can't touch it until she is 25.
I'm not sure If this is what you should do , but I invested the money in my own account and put D as POD(Paid on death). However, I did not do that for financial aid purpose because I won't qualify for any.</p>
<p>TooRich:</p>
<p>Then why did you not leave D's trust as it was??</p>
<p>The restriction of the trust and the investment return was not up to par. I had to sign tons of paperwork to remove the trust and I was the contributor. It would be more complicate if she were above 18. So I'm just glad to get rid of it.
I plan to invest her money in Roth IRA, she just got her first job so there is income to quality for a Roth IRA.</p>