Is an executor of an education fund autonomous in deciding if a recipient is worthy?

[stealth2]

And I'm wondering.... 2k? Why didn't you/Mom cover it? I drained a pension to make sure my kids could continue when my ex bailed on college costs. And it was hella lot more than 2k.

 

[HRZ]

It is very possible that the powers of the trustee are quite broad...consult them and quote them here...A debate over the discretionary limits /abuse with two sets of lawyers may get expensive very quickly ..and I suspect there are other issues since apparently son does not reside with dad.

Explain exactly how the funds are held for this 20 year old .

BTW the problem might be self curing if funds go directly to young person at 21?

 

[quincy]

what I want to know is. simply... what gives his great aunt such autonomous power to wreck a 20 year old kids future? and can she be sued for losses and damages and forced to reinstate the fund so long as he continues full time and maintains a respectable G P A[/

I believe - but will have to check on this - that your son's great aunt is given the authority to disburse funds as directed her by the will.

There can be tax implications if the distribution from the ROTH exceeds the qualified expenses or is not for qualified expenses. For example, room and board is not a qualified expense if your son was not attending school at least as a half-time student.

If your son dropped classes or did not enroll as at least a half-time student, the distribution would not be tax or penalty free.

Can't you speak to the great aunt to figure out what her reasons are? I am not convinced you will get completely accurate answers from your son.

This is not an area of expertise for me, so my best advice is to get the necessary clarification from the source of the problem - the great aunt.

 

[LdiJ]

It might also be wise to consult the trust.

I guess I worded that poorly. I am suggesting he have an attorney review the trust to see if she actually has the authority to do that, and if she does, if there is some mechanism by which she can be replaced as the trustee.

 

[Zigner]

I guess I worded that poorly. I am suggesting he have an attorney review the trust to see if she actually has the authority to do that, and if she does, if there is some mechanism by which she can be replaced as the trustee.

You know me, I usually am very liberal with the advice to "talk to an attorney", but in this case, the trust might be very clear even to a layman. Yes, if there are still questions after the OP and/or his son read the trust, then an attorney is a good place to go for further review.

 

[quincy]

You know me, I usually am very liberal with the advice to "talk to an attorney", but in this case, the trust might be very clear even to a layman. Yes, if there are still questions after the OP and/or his son read the trust, then an attorney is a good place to go for further review.

I agree that it is better to seek clarification from the source before hiring an attorney. An attorney might be necessary later if a problem with great aunt as executor is discovered. She might be doing exactly what she was directed to do.

 

[Shadowbunny]

he flunked and dropped 1 class... we agreed the fund should NOT pay for his failures, but aside from the dropped and flunked class his g p a is in the 3.6 range.. the problem is this quarter.. she changed her mind after it started and left him to rot. a week AFTER the quarter started

The math isn't working out on this: he failed one class and dropped another. Unless he was getting As in all his other classes, how did he manage a 3.6 GPA?

 

[Legalsetgo]

It might also be wise to consult the trust.

How is that wise? Explain , it will be helpful to mike

 

[quincy]

How is that wise? Explain , it will be helpful to mike

Perhaps you can explain why it wouldn't be.

 

[Legalsetgo]

The executor must follow declaration ,procedural language, of the trust. I do not have the literal document therefor, you will never get an accurate intrepretation for autonomous.

 

[not2cleverRed]

How is that wise? Explain , it will be helpful to mike

Well, golly, because being informed on a subject might actually help Mike make useful decisions? Ignorance is expensive.

 

[cbg]

How is that wise? Explain , it will be helpful to mike

Are you suggesting that it would be unwise? If so, please return the favor and explain why.

 

[quincy]

The math isn't working out on this: he failed one class and dropped another. Unless he was getting As in all his other classes, how did he manage a 3.6 GPA?

A 7 or 10 point scale?

 

[Shadowbunny]

The executor must follow declaration ,procedural language, of the trust. I do not have the literal document therefor, you will never get an accurate intrepretation for autonomous.

What in the blazes are you trying to say?

 

[HRZ]

OP it might help if we knew exactly what the account is and how it held ...my limited understanding of custodial Roth IRAs is that they convert to Roth IRAs at age of majority , generally 18. Not 21 as is common for UTMAs