Protecting student assets

<p>To clarify- that was the sum total of my inheiritance- 100% of anything that I had ever received or was likely to recieve.
I did not receive anything when my father died when I was 17- I did not receive anything when my grandparents died as their estate went to my mother- and she has gone through it so fast she is having to move in with my brother. ( it was in the millions)
The $40,000 was money that my grandmother had given me years ago, I should have invested it and just used the interest, but I knew nothing about money- it was more than I made, it was almost as much as my husband makes now in a year. But I was very young, thought I was going to only have one child, and wanted her to have as good of a start as she could. I never thought at that point about college- neither I nor my husband had attended college & it was obvious that with her concerns- she was going to have to get to a place where college was even a possiblity before I worried about paying for that.
Some of it went for her medical expenses ( she was 10 weeks early & had intercranial hemmorage), but most went for her elementary schooling.
I agree we were very lucky. If we hadn't had that money- we would probably still be paying for her hospital bills, let alone her K-12 education!</p>

<p>Let me add my voice to the chorus of dismay. Every extra buck, including inheritance, in our family has gone to education. We haven't hidden a thing--I have no doubt that there are people who need the aid more than we do. My kids are fortunate and grateful that they have been able to choose schools w/o worrying about cost. What else is the money for?</p>

<p>A year or two ago, a guy came on and actually griped that he had a big enough income to buy a second home, which he felt he deserved, but that he then needed aid for his kid's college and wasn't getting it, which was "unfair". I said, "let me get this straight: you want a vacation home, and a pricey education for your kids. You can't afford both, so you want someone else to pay for one so you can have the other." I just don't get it.</p>

<p>I can see where Gadad is coming from. </p>

<p>He is trying to use the "single pot" theory: The food the offsping enjoys comes from the same pot that we (family) all partake. We currently have one large pot but there is a separate pot just for you (kid). Now next year you can use my pot but if there is trouble I must cut you off and you must use your pot. If my pot becomes empty you can continue in your pot and I will starve because you cannot give me anything from your pot.</p>

<p>in other words.
Parents side: What is ours (family) includes you. However the recipe states, unequivally, that yours does not include us.</p>

<p>UGMA side: What's mine is mine. And what is yours (parents) is mine also.
****
Does this make sense? Is there something wrong?</p>

<hr>

<p>garland: It must've been me. Today, two years later, I could have funded kid's education, have the UGMA untouched, and have 50% equity in the vacation home.</p>

<p>But it seems to me that, bottom line, student's money can and should go to school first, then the parents', and then if those both don't add up, that's when FA comes into play. It sounds like the family "pot" and student "pot" are otherwise large enough, whether combined or not. It looks to me like looking for someone else's "pot".</p>

<p>And i dn't think it was you. The tone was far different. It may have been even more than two years ago.</p>

<p>"To clarify- that was the sum total of my inheiritance- 100% of anything that I had ever received or was likely to recieve.
I did not receive anything when my father died when I was 17- I did not receive anything when my grandparents died as their estate went to my mother- and she has gone through it so fast she is having to move in with my brother. ( it was in the millions)"</p>

<p>My only point was that a $40,000 inheritance is far more than probably most people receive. To me, it's a lot of money.</p>

<p>ok you made your point that to you $40,000 is a lot of money- I cam certainly acknowledge that to you $40,000 is a lot of money,
But when the schools that most of the posters on these boards are talking about cost * at least * $40,000 for * one year *, it doesn't seem that much money when you are talking about the cost of education. ( or of her 8 week NICU bill- seen what they charge for tubing?)
My grandparents were able to amass millions just because they were hard workers and frugal.( and were wise investors)
My grandmother worked as a clerk at a grocery store for many years, and retired as a salesperson for a dept store. My grandfather had to quit school to work his fathers farm in the 8th gd, but then moved to Washington during WWll and started working for Boeing.
They paid cash for their house, because they didn't beleive in credit.</p>

<p>I can see how working steadily and living below their means may seem unusual to some people, particularly if they are able to give money away to their grandchildren, but it used to be much more common in this country. Live frugally so that your children can have a better life, but now we want to borrow, so that we can spend our childrens inheiritance, we certainly don't want to live below our means, and we have a heck of a time saving for the future.</p>

<p>I was wondering why gadad has not responded, so I looked to see if he has posted anywhere lately. Turns out this dad works at a college. He is a VP and says he reads applications!!!! I think the op was very clear. He was asking how to get the money out of the kids names to not have to use it paying for college. How many people are like this out there? Do they realize what values they are passing down?</p>

<p>I wonder if we are lab rats in Gadad's clever experiment to test attitudes about robbing children of their college funds?</p>

<p>i wish my kid just had the money to use! he has quite a bit put aside which would have been great if he had decided to go to a state school. however, that is not going to be the case, so even though he had a few years set aside, it will probably be eaten up in a year! but the good thing is, at least he has that much! i find it disturbing that someone is complaining that their kids have too much in an ugma account! come on...the rest of us will be eating mac and cheese the next four years--he should be happy!</p>

<p>ramen is really much cheaper and if you add some tofu and vegetables it isn't bad at all :)</p>

<p>dt123 I smell a rat!</p>

<p>If Gadad works at a university, perhaps his offers tuition exchange...of course that would not be for the Ivies...but many many colleges do it for their employees and kids.</p>

<p>gadad is looking for options to pay for college. He touched one extreme and wants to know if there is another extreme option, and everything else in between. gadad is unsure what is best. He is inquiring because he has enough knowledge that when it comes to money, AND especially if its someone else's money, (prudent man theory.) he is not only a parent of a soon-to-be-college kid, but he may also have the custodial responsibility of the UGMA. Calmom would be more of an expert in this area.</p>

<p>let's explore the field of discussion by asking questions.
Is using the UGMA the best way to pay for school?
Is/are there other things and responsibilities that are more important than paying for school? Daughter's wedding, buying her first home, a safe and economical vehicle, medical insurance for her, an emergency fund for her, having a home that she can come back to for Christmas, etc?
Are unsubsidized (assumed no substantial scholarships) Stafford loans in her name and PLUS for parents or house refinance or selling of some unused asset, possible alternatives?
The school's formulae for determining "need" mean that kid's assets must be used in this manner or only a method for the school to determine student's need eligibility? </p>

<p>Let's simplify this further.
Assume you have a pile of money, a big pile of money. And you have an eye for this dream house that will use all of this pile of money. There could be some money from your income to pay for maintenance, utilities, landscaping, but no appropriate furniture. Would you buy this house for cash (no loans) or would you explore ALL possibilities?</p>

<p>I have ramen for breakfast, daily. A meaured amount of starch and fats. different flavors, inexpensive, can be modified with other foods, transportable, breakfast of upcoming champions. Don't need to share it because coffee mates can't imagine it for breakfast. I however Can't stand it for lunch or dinner, looks like barf.</p>

<h1>27. Me.</h1>

<p>A:If I could, I would. Q: If you can, would you?</p>

<p>OT...but there is a new book out "150 Things You Can Do With Ramen". Very funny...but somewhat practical....if you eat Ramen daily.</p>

<p>It's too much: If FA was not in the original qustion, then sure, you're analogy makes sense. But using loaded words like "protecting" the money and avoiding having it "tapped" (like agents with guns are at your door forcing you to fork it over) made it clear that he was asking how to hide it so someone else can pay for the dream house, so they'll be enough left over to furnish it. Taking out a mortgage is not the same thing as maneuvering to get FA when you have the money.</p>

<p>even if what gadad was proposing- to use childrens money to pay parental expenses was legal and ethical ( which it isn't) he admits that it wouldn't be worth it because he also would be required to pay tax on the money as income.
Du'oh
Incidentally student contribution are considered to be zero in few cases ( such as when student income is necessary to help pay basic living expenses for the family- for familes who qualify for Pell grants- not the case here)- The schools I know of- assume contributions by summer student income to be $2,000 to $4,000 and reflect that in the EFC.</p>