ShoMeSomeFun Posted February 22, 2012 Report Share Posted February 22, 2012 I was able to restructure my child support agreement to allow me to put part of what I normally pay towards a trust fund for my child, instead of all of it going to the mother. 250 dollars a month will go into the trust fund however I am unsure of how to even start a trust fund that I would like for my child to have once he is 18. What have others on here done, and what would you recommend? Thanks for all input. Quote Link to comment Share on other sites More sharing options...
Dr. Pomade Posted February 22, 2012 Report Share Posted February 22, 2012 First, I think it's great you're diverting some of your child support into a trust fund. Kudos on getting that accomplished. My best advice is to consult with an attorney that specializes in trusts, wills, etc. Ashley and I are currently in this process and in fact will be signing our wills and what not in just a few days. The lawyer we've worked with has been great: a younger guy (so he's relatable), down to earth, and realistic about things. Send me a PM if you're interested and I can get you his contact information. Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted February 22, 2012 Report Share Posted February 22, 2012 I would agree with what JB said... see a lawyer that works in the field. What exactly does a 'trust fund' mean. I always imagined it being a complicated account. Is it just simply some type of account (savings, investment, etc) that's directed by the rules in the trust? We are wanting to put a little money away for our new nephew, since we plan on not having kids. And are wondering how this would work. Debating whether to do just some regular savings account in his name or a 529 type of account. His parents, my sister and brother in law, will have his college covered, so we are leaning towards a regular account so he can have some regular money. To buy a car, use for beer money in college. Travel... to the moon, because that's going to be THE place to go for spring break when he's in college. This is also what my parents are doing, a regular savings account. This kid is going to be set when he turns 18. Trust fund kids... lol [/jones] Quote Link to comment Share on other sites More sharing options...
GRN96WS6 Posted February 22, 2012 Report Share Posted February 22, 2012 If I don't have kids and I have the means I'd like to do something similar for nephews/nieces so they have a little help to get started in life. What I'm most afraid of is them not having the knowledge to know what to do with let's say 10K at age 18, since I'm not raising them I can't control how they learn how to handle money and not everyone has the same outlook regarding it. I'd be most afraid of them pissing it away or their parents getting a hold of it. Quote Link to comment Share on other sites More sharing options...
POS VETT Posted February 22, 2012 Report Share Posted February 22, 2012 A trust fund can be tailored by setting limits and conditions. The release of the fund does not have to happen in one lump sum. The principal can even be invested one way or more and terms can be set that the principal will never be touched. Quote Link to comment Share on other sites More sharing options...
Dr. Pomade Posted February 22, 2012 Report Share Posted February 22, 2012 Yup, you can set limits and conditions for how and when the money is distributed. That way, an 18 year old, who, IMO, should never have unlimited access to a bunch of money, doesn't take their inheritance and blow it on 14 ZR1's. You can set things up in such a way that X amount of money is distributed at this time, X amount at this time, and so on and so forth. That's what Ashley and I did. Also, we added a clause into our wills that, in order for our children to get their inheritance (and in the event we're dead by the time they are 25 years old), they must use a percentage of it to travel overseas, see the world (and hopefully learn something about themselves), and do some kind of charity work. Quote Link to comment Share on other sites More sharing options...
mrs.cos Posted February 22, 2012 Report Share Posted February 22, 2012 Also, we added a clause into our wills that, in order for our children to get their inheritance (and in the event we're dead by the time they are 25 years old), they must use a percentage of it to travel overseas, see the world (and hopefully learn something about themselves), and do some kind of charity work. Excellent clause, i know others have also added that the child must attain a college degree before recieving a full pay out as well.. Quote Link to comment Share on other sites More sharing options...
Wease Posted February 22, 2012 Report Share Posted February 22, 2012 Man, you guys are nice, setting up funds for kids that aren't yours. I've got a 529 plan for both of my young ones and a will setup should something happen to the wife and I. If anything happens to me, the wife is set, I've got a major life insurance policy on me. That being said, take care of yourself first, then worry about the others... :nod: Quote Link to comment Share on other sites More sharing options...
Dr. Pomade Posted February 22, 2012 Report Share Posted February 22, 2012 Man, you guys are nice, setting up funds for kids that aren't yours. That being said, take care of yourself first, then worry about the others... :nod: First, what are you talking about kids that aren't mine? Second, no one is advocating in this thread that you should worry about a trust fund before taking care of your own finances, etc. No one asked, "Hey guys, should I set up this trust fund first or pay off my credit card debt?" Your obvious point is obvious. Quote Link to comment Share on other sites More sharing options...
Wease Posted February 23, 2012 Report Share Posted February 23, 2012 First, what are you talking about kids that aren't mine? Second, no one is advocating in this thread that you should worry about a trust fund before taking care of your own finances, etc. No one asked, "Hey guys, should I set up this trust fund first or pay off my credit card debt?" Your obvious point is obvious. Did you read the thread? Both GRN96WS6 and Trouble Maker said they would do it for their nieces and nephews. Quote Link to comment Share on other sites More sharing options...
GRN96WS6 Posted February 23, 2012 Report Share Posted February 23, 2012 Did you read the thread? Both GRN96WS6 and Trouble Maker said they would do it for their nieces and nephews. Well you see Sean if I don't plan to have kids of my own why shouldn't I if possible take care of my other family if I have the means? My wife will be taken care of but if we're both making solid money and can't spend it all there is no harm in helping out the less fortunate. Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted February 23, 2012 Report Share Posted February 23, 2012 Well you see Sean if I don't plan to have kids of my own why shouldn't I if possible take care of my other family if I have the means? My wife will be taken care of but if we're both making solid money and can't spend it all there is no harm in helping out the less fortunate. My BIL and sister are pretty solid so I'm sure they will be able to take care of his schooling. That's why us (me and my partner) and my parents are both separately setting up small 'fun money' funds for him. I just want to take care of my family and support the future generation a little. We are taking care of ourselves just fine and I'm talking $5-10 a week, so one less crapafrapachino a week. That won't even be enough to get in trouble with in 18 years. Quote Link to comment Share on other sites More sharing options...
Dr. Pomade Posted February 23, 2012 Report Share Posted February 23, 2012 Did you read the thread? Both GRN96WS6 and Trouble Maker said they would do it for their nieces and nephews. Pro tip: try actually quoting who you're referencing to avoid confusion. We can't read your mind. Quote Link to comment Share on other sites More sharing options...
Wease Posted February 23, 2012 Report Share Posted February 23, 2012 Well you see Sean if I don't plan to have kids of my own why shouldn't I if possible take care of my other family if I have the means? My wife will be taken care of but if we're both making solid money and can't spend it all there is no harm in helping out the less fortunate. Hey, if you can, have at it. Most people don't save nearly enough for retirement, hence I pointed out that you should really make sure you have yourself covered first. :nod: Pro tip: try actually quoting who you're referencing to avoid confusion. We can't read your mind. I normally do, but I didn't this time. Sorry for not giving a fuck. Quote Link to comment Share on other sites More sharing options...
Dr. Pomade Posted February 23, 2012 Report Share Posted February 23, 2012 I normally do, but I didn't this time. Sorry for not giving a fuck. Apology accepted. Quote Link to comment Share on other sites More sharing options...
DaddyBuiltRacing Posted February 23, 2012 Report Share Posted February 23, 2012 I started a savings account the day we found out my wife was pregnant. We throw all of our change into his piggy bank and every so often take it into the bank and exchange it for a savings bond once he has a $100. He is up to $700 (amazing how fast change adds up), anyways I have been wondering about different ways to make a little money go further. I have heard of the 529 (I believe thats the number) program, hoping someone can post up some more info on how exactly it works. I have talked with my wife and we've agreed that if he goes to college at 18 he'll get the money to go towards school. If he doesnt then he wont get the money until he's 25ish, simply because I don't want him getting a wad of cash an blowing through it. Quote Link to comment Share on other sites More sharing options...
stangsn95gt Posted February 23, 2012 Report Share Posted February 23, 2012 Pro tip: try actually quoting who you're referencing to avoid confusion. We can't read your mind. Wait, so you don't get psychic abilities at the 984th level. Quote Link to comment Share on other sites More sharing options...
Dr. Pomade Posted February 24, 2012 Report Share Posted February 24, 2012 Wait, so you don't get psychic abilities at the 984th level. 993rd. BRB, undergoing new campaign. Quote Link to comment Share on other sites More sharing options...
Wease Posted February 24, 2012 Report Share Posted February 24, 2012 Wait, so you don't get psychic abilities at the 984th level. You can read at 1st level, actually... Quote Link to comment Share on other sites More sharing options...
GRN96WS6 Posted February 24, 2012 Report Share Posted February 24, 2012 Hey, if you can, have at it. Most people don't save nearly enough for retirement, hence I pointed out that you should really make sure you have yourself covered first. :nod: I normally do, but I didn't this time. Sorry for not giving a fuck. I'm not talking thousands in support here just something to start them off with a little money providing they aren't an idiot and waste it on stupid crap. I'm definitely taking care of myself and my wife before anyone else. Quote Link to comment Share on other sites More sharing options...
Dr. Pomade Posted February 24, 2012 Report Share Posted February 24, 2012 You can read at 1st level, actually... Ambiguous use of "you guys": acquired at 17th level Giving out obvious advice: mastered at 19th level Professing to not give a fuck, but then acting like you give a fuck: achieveable with +4 ring of hypocrisy Quote Link to comment Share on other sites More sharing options...
kirks5oh Posted February 24, 2012 Report Share Posted February 24, 2012 Yup, you can set limits and conditions for how and when the money is distributed. That way, an 18 year old, who, IMO, should never have unlimited access to a bunch of money, doesn't take their inheritance and blow it on 14 ZR1's. You can set things up in such a way that X amount of money is distributed at this time, X amount at this time, and so on and so forth. That's what Ashley and I did. Also, we added a clause into our wills that, in order for our children to get their inheritance (and in the event we're dead by the time they are 25 years old), they must use a percentage of it to travel overseas, see the world (and hopefully learn something about themselves), and do some kind of charity work. Damn. These are all good ideas. My wife and I just got our will done. Now I've got to go back and revise it. Thanks for the info We have 529 plans for each kid, and should have college completely covered, maybe even private college or grad school, hopefully wothout having to put any extra money in, while they're in college---i'll have 3 in college at once All other money goes into general savings, bonds, mutual funds, etc. I don't have a specific trust fund set up, but maybe I need to start one Quote Link to comment Share on other sites More sharing options...
Wease Posted February 24, 2012 Report Share Posted February 24, 2012 Ambiguous use of "you guys": acquired at 17th level Giving out obvious advice: mastered at 19th level Professing to not give a fuck, but then acting like you give a fuck: achieveable with +4 ring of hypocrisy Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted February 24, 2012 Report Share Posted February 24, 2012 I have heard of the 529 (I believe thats the number) program, hoping someone can post up some more info on how exactly it works. I have talked with my wife and we've agreed that if he goes to college at 18 he'll get the money to go towards school. If he doesnt then he wont get the money until he's 25ish, simply because I don't want him getting a wad of cash an blowing through it. I don't know all of the details about them, but in general they sound pretty damn good. AFAIK, tax deferred before AND after as long as the funds are used for 'school related expenses'. Which I think can cover tuition, books, and living expenses. I think if you don't use them for school related expenses it gets taxed when you pull it out, use it. http://www.collegeadvantage.com/ Go see a financial advisor, they should be able to talk you through everything. We were talking about contributing to a 529, but like I said, my sister and BIL will have that covered. So I'm just wanting to toss him some beer money while he is in college. Quote Link to comment Share on other sites More sharing options...
DaddyBuiltRacing Posted February 24, 2012 Report Share Posted February 24, 2012 Yeah I will call a financial advisor next week at some point and look into this. I don't want my son and or future kids having to worry about how they are going to pay for college and take out thousands in student loans like I have had to Quote Link to comment Share on other sites More sharing options...
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