Discussion in 'Substance Abuse' started by toughlovin, Mar 9, 2012.

  1. toughlovin

    toughlovin Guest

    So I found out something interesting. As I have mentioned my dad is not doing well and I am sure will be passing on soon. I know he has left some money to both of my kids. Not an exhorbitant amout but way more than I want my difficult child having access to in the near future. So I checked it out with a financial person and it is possible to just deposit a check from the estate directly into a 529 (college fund type account) in his name as long as you have a letter from the executor of the estate. I am so relieved as my dad is not in any kind of shape to change his will at this point.

    Thought some of you might at some point find this useful info.

  2. exhausted

    exhausted Active Member

    Thank you for sharing this information. :)
  3. InsaneCdn

    InsaneCdn Well-Known Member

    For those who are earlier in the process... my Dad set up his will with "non-sticky strings attached" (his lawyer's non-technical term). If they set it up too strict, the courts can squash it. Dad's says... "it is my express wish and desire, but not command, that funds flowing from the estate to heirs under the age of 25, be used to improve their formal education"... which means, the executor CAN write the kind of letter you are referring to, because the writer obviously "intended" that to be the case.... but if, say, the child were injured in a car accident and will never BE going to school (full-time nursing care?), the funds can be re-directed.
  4. Nancy

    Nancy Well-Known Member Staff Member

    What if he never goes to college?
  5. DDD

    DDD Well-Known Member

    If it is a State tuition program there are guidelines. We had difficult child#1's college prepaid for four years including everything...then...he had the brain surgery. We were able to get our money back since he was deemed unable to participate in college. difficult child#2 has two years prepaid. In Florida I "think" that if the child has not enrolled by age 25 the money is available for refund. I could be wrong on the age but I know there is a cutoff. We've been told that all State's are different in the guidelines and the percentage of refund money. It would be worthwhile to check it out. DDD
  6. keista

    keista New Member

    529 is different than prepaid. Even though a 529 is set up in a child's name, if the child never goes to college (or has qualifying educational expenses), then the parents can withdraw the money. There are tax ramifications, but not really a big deal. Now, setting it up for an adult form an estate would be a different situation. I would think that that adult, as owner of the 529 would be allowed to cash it out.

    I had known someone who had a sizable inheritance sitting around and it was driving him nuts because it was set up for education or medical expenses ONLY. This guy was forever trying to convince the executor (I think it was a bank) that he was taking classes from this person or that person. hehehehe Executor always insisted on proof of "enrollment" at a legitimate institution. And seriously, if it were even like pottery classes at the local craft shop, I think the executor would have approved it, but this guy just really wanted to "play" A true difficult child.
  7. toughlovin

    toughlovin Guest

    With a 529 you can also transfer money from one 529 to a different child, or save it and use it for grandchildren, etc. It can cover a bunch of post HS educational programs.... so it could cover a vocational school etc which I hope at some point he goes to. We already have a 529 set up for him which my dad has contributed to... so in our case I think it is pretty easy to do this. To me it seems the best option because really giving him the money directly in the near future would be a huge mistake.