<p>My parents are going to be claiming the money from my trust fund soon, due to our family's dire financial issues.
My question is, should I put down that I do not have a trust on the CSS, as my parents are going to be taking it soon?</p>
<p>Huh? What do you mean - your parents are going to be “taking” it? if it’s in trust for you, how do they have the right to do that???</p>
<p>But regardless, if you have a trust fund now, and you’re filling out the CSS now, then you declare the trust.</p>
<p>Thank you very much for the answer, I needed it quick.
We’re in huge debt, and I’d rather not be out on the streets, so I don’t mind, considering I do not understand the significance of the trust fund.</p>
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<p>Your trust fund is YOUR trust fund… possibly not supposed to be used for “family expenses” if that is what is happening, depending on the legal language of the trust. It is possible that this was not the intention of the person who set up the trust. Hate to say it, but you should review the language of the trust if possible. It sounds like your parents are telling you they need the money to cover family living expenses. That could be a violation of the trust terms, however. You may even want to review it with an adult who is NOT your parent.</p>
<p>And you could mind A LOT if later in life you see the terms of the trust, and realized that it was specifically set up to skip a generation (maybe because your parents don’t handle money well?) or set up to pay your college expenses or something.</p>
<p>Either way, you either need to declare the trust on the CSS, or someone in your family (you or your parents) need to declare the withdrawal from the trust. I am unclear whether it would be an asset or income, though… also, whether it should be YOUR asset/income, or your parents. Someone else with more knowledge in this area might chime in.</p>
<p>Questions about the trust that you should know the answers to:</p>
<p>Who is the trustor (the person who set up the trust)? Is that person still alive?</p>
<p>Who is the trustee (the person responsible for administering the trust, handling all investments, etc.)?</p>
<p>Who are the trust beneficiaries? Is it just you, or is it you and others?</p>
<p>When does the trust terminate? (Often funds will be held in a trust until the beneficiary reaches a certain age, but it’s not always that way.)</p>
<p>If your parents are the trustees, you need to ask to see the trust document. Read it, figure out what limits there are on how the trust funds can be used. If you don’t understand it, find an adult you trust and ask that person to help you.</p>
<p>If someone else is the trustee, you need to speak with that person and ask them what the trust is for, and what limits there are on how the money in the trust can be used.</p>
<p>And, just so you know, even if the money in the trust is just for you, and no one else, you probably still do not have the right to give it to your parents, even if they need it, and even if you want to. People put money in trusts to protect the money, and make sure it gets used for what it’s supposed to be used for. The trustee’s job is to make sure that the wishes of the person who set up the trust are followed.</p>
<p>I know you just want to leave this all to your parents . . . but you’re old enough to start asking some questions.</p>
<p>If it’s your trust fund you need to find out more about it. I don’t know your family situation, so don’t take this personally as it’s just a “what if” type post. It may be NONE of this really applies to you. That said, I’ve dealt with trusts for kids/grandkids for many years and so I am going to discuss the TYPICAL reasons they are set up and how that might apply if parents want to “get at them”.</p>
<p>Grandparents/others may set up a trust for a grandchild to ensure they are able to have some funds for college or another reason. One reason they often do this is that they know the kid’s parents are irresponsible with money - so the trust shields the money from the parents blowing it on family expenses, preserving it for to provide the grandkid a chance to start adulthood on the right foot - with a college degree. Then, as the grandparents expected, the parents do get into financial troubles and want the money. They may even be trustees so they figure it’s up to them. They take out the money for “family expenses” and the kid gets screwed. Illegal, but done all the time because kids don’t know what to do or are made to feel guilty if they don’t allow it for the “good of the family”.</p>
<p>I’ll stop there, because I don’t know if this is what we’re dealing with here and the solutions are not worth discussing if it doesn’t apply. I will say that on the CSS profile you have to tell the TRUTH as it stands when you complete it. So, you HAVE a trust, it will count against you for financial aid (as it should) and if taken out not for YOUR college costs will double-screw you. </p>
<p>If you care to elaborate on your family situation and your understanding of who set the trust up and why I’m sure you’ll get more specific answers. IF it’s a situation where your parents are irresponsible with money (as opposed to a specific issue that casued a short-term hardship) then you’re in a tough spot. Just understand that IF that’s the case, they’ll most certainly blow your money just like they did theirs… and you’ll not have the leg-up the trust grantor tried to preserve.</p>
<p>Let us know what’s up or just good luck to you. It’s a tough spot for a kid to be in.</p>
<p>Grace, please let us know how things go. This will not be an easy conversation with your parents.</p>
<p>Grace, I am assuming you are a senior in HS, or older. Accept now that your parents will tell you that they will lose their house if they do not get money from you. Start trying to figure out if there is someone else you can live with if you have to. Accept that they will not contribute one cent for your college. Make certain you have money for all 4 years. As others said, it is highly likely someone set up this trust because your parents are not good with money. If you let them have the money, it is likely they will blow through it. Take care of yourself, becuase they have shown they can not even take care of themselves.</p>
<p>If you are asked to sign anything to turn this money over to your family, do NOT do so until you speak to a trusted adult regarding the provisions of the trust.</p>
<p>Gracemoon, </p>
<p>Please listen to advice given here. We understand that you love your parents and want what is best for them, but they don’t want what is best for you. Otherwise they would not dare to touch your trust fund. You are probably almost 18 now - almost an adult. Now is the time to start acting like one, which means taking care of yourself, because your parents would not.</p>
<p>Initially, your parents might be angry with you for not letting them touch your trust fund, but if they love you as much you love them, they would eventually come around.</p>
<p>Best of luck to you and yes, please come back and let us know how everything worked out for you.</p>
<p>Grace came here with a very specific question about completing the CSS, which question has now been answered, I believe. We have all expressed concern about the safety of the trust Grace told us about, and it appears there is good reason for the concern. But, none of us knows the details of Grace’s situation. We don’t know the identity of the trustor, the trustee, or the beneficiaries. We also don’t know what limits, if any, were placed on the use of the trust funds. Several of us have come very close to accusing Grace’s parents of stealing from her . . . but we just don’t have enough information to know if that’s actually the case.</p>
<p>Please, let’s just take a step back. Yes, there’s reason for concern . . . but none of us is in a position to judge what’s going on here.</p>
<p>Dodger - it has been suggested by many (inlcuding you) that Grace, who may be a minor, try to investigate. </p>
<p>I am so sorry I did not know about a similar situation with one of my DDs friends. The girl’s father had died, and in a lawsuit money was put away for her college. When the girl started college, the mother would take her with her to the bank, and make her sign for more money than needed for college. The mother had plastic surgery and took cruises. Needless to say, the college money only lasted two years, and now the girl (whose mom earns too much to get FAFSA or NYS aid) is working as a waitress, until she can be an independent student. If my DD had told me, I would have told the girl not to do this, and live on breaks with Grandma.</p>
<p>Dodger, I would also say, if the parents have the right to claim money, OP is NOT the only beneficiary of the trust, and that the student should only indicate the appropriate portion of the trust as her share. Either her parents have the right to invade or do not.</p>
<p>My mother is apparently also a beneficiary of the trust, as she told me recently.
We do not live in a house, we live in a rented accomodation. The house has been sold a while ago to keep us afloat.
Thank you all for your considerate and worried comments. I really appreciate them.
And I’ve known since I was little that I would have to either get a full scholarship to a school or a full financial aid package.
If all of it comes down to it, I will just have to attend a state school, so it’ll be alright.</p>
<p>Grace, as noted in the post directly above yours, if you’re not the sole beneficiary of the trust, you would not claim its entire value as your asset. Since this could have a significant impact on your EFC, you really should find out exactly how the trust is set up - how many beneficiaries there are and who is entitled to what share of the trust principal.</p>
<p>Dodgers, if in fact mom can take all the trust assets, it would seem to me that OP is only a contingent beneficiary and based on the facts and circumstances this should be reported as an asset of mom.</p>
<p>It makes me sad reading this, Grace seems likes such a nice and understanding girl. However, remember this Grace, if your Mom uses all of the money in the trust to pay expenses and there is not other income coming in she is just preventing the inevitable for a very short time. Once the money in the trust runs out what is the plan then? Your Mom needs to be thinking more in the long-term. These short-term measures are obviously not working and she needs to reevaluate.</p>
<p>Grace, you really have two choices here… you can avoid conflict and not find out the details of this trust and allow your mom to do as she wishes/needs with it OR you can let her know you need the details to properly fill out the CSS/FAFSA and in a big hurry. Someone earlier gave you the pertinent info you need, but to start with how much $$$? Who specifically are the beneficiary(s) ? Who funded the trust and why? How is it to be distributed, by whom and for what purposes if any ?</p>
<p>Again, it’s your call. I don’t know how I would have handled this as a very young adult. I do know it is nearly impossible to accurately complete the CSS Profile for colleges without this information. I’m not sure about the FAFSA but that also may need he correct info. I really can’t figure out how else to complete these without your mom being very specific about the trust details. It’s not rocket science, btw, just a document with various provisions for specific individuals. You either can see it/read it or you can’t, I guess. </p>
<p>You can’t just “wing it” on the CSS profile of FAFSA. What if you get accepted to a CSS college, are offered a wonderful need-based package and plan to attend. THEN, they do a review/audit of your CSS info, find out you were wrong about how much of this is really considered YOUR money, and the aid is revoked? I doubt it would matter at all, in this situation, whether it was an “honest” mistake or not. If you have a large amount in trust for YOU it is expected to be spent on college over the 4 years. If your mother uses that for family expenses, well, that’s your family’s call - but the college won’t provide that aid they calculate you could have afforded.</p>
<p>As a note, if you are the beneficiary of a trust, this needs to be out on the FAFSA as well.</p>
<p>Thumper, let’s be careful. This is a young person we are talking to. Mom may be the primary beneficiary, and OP may be contigent beneficiary. If mom has the right to take money and intends to do so, I think this is a parent asset. Certanly for FAFSA, there is a big difference between a parent asset and a student asset. If the parents are in the hole financially, it may even make a difference for CSS.</p>
<p>If mom does not have to get OP to sign a document, then it would appear mom has the right to the money.</p>