Originally Posted by Nords
Without sharing the details in a situation I've learned of, lemme just say that the intergenerational resentment lasts for at least three decades. So keep that secret well.
Well, I have no secrets for my kids, they have custodial accounts and my dead sister's 403B money. The annual RMD's are funding the UTMAs. When they go to college, I am going to sit down with them and tell them the rules:
1)Your aunt wanted you to go to college and get an education, so she left you this money.
2)You will have enough to attend any public university in Wisconsin or any state Wisconsin has a reciprocity agreement with. if you go to private school, there may not be enough, so plan accordingly.
3)There will be enough money in your custodial accounts for spending money and miscelleaneous items you'll need at school. Again, when it's gone,it's gone, so plan accordingly.
4)If you decide to pay the taxes, take all the money out, drop out of school, and be a bum, just remember that she can watch you anyhwere you go. Do you really want that on your conscience??
As far as the current 529 plans go, my wife has a niece that's quite gifted and whose parents are pretty broke, so we're going to help her with college and grad school.