My children (ages 2 and 6) were each willed $50,000 towards their college funds. I forgot to ask the lawyer, but when do children typically get these funds? when they are 18? And where do they go until then? Will my friend set up an account for me withe their names on it?
2006-10-05 02:38:43 · 2 answers · asked by jilly_beans79 1 in Family & Relationships ➔ Other - Family & Relationships
Easy question to answer. If the funds are liquid (the money is there), there are ways to open a trust fund (CD or other options available) that matures at a certain age. With that amount of funds, there are major banks that will set them up for you, free of charge.
I personally had the same experience...I received some of the funds at 18 and then the remainder at 21. If you are their legal guardian, you can have it set up anyway you want.
The investment should be a low yield but secure account. Even if it is low yield, imagine what it would grow into in 10 years being interest is compounded yearly.
Of course there may be provisions in the will that specifically states "for education only" or other subject matter like "Funds can only be withdrawn for education or extreme emergency. There are a lot of variables to this question.
2006-10-05 02:56:11 · answer #1 · answered by Magicman 4 · 0⤊ 0⤋
I should be set up in a trust to mature at age 18. I the meantime it should be drawing interest.
2006-10-05 09:42:50 · answer #2 · answered by peckerwud2 3 · 0⤊ 0⤋