Posted on 07/13/2022 3:52:13 AM PDT by where's_the_Outrage?
Afather has garnered support online after admitting to holding his son's college fund "hostage" upon discovering the son no longer wanted to attend.
The 48-year-old man, under the handle of u/Night_Owl63, took to Reddit's "Am I the A**hole" forum where users head to gain insight into their own personal dilemmas. He shared that he started the college fund with his wife as soon as they found out she was pregnant and added that they have so far raised around $400,000.....
However, the son has decided since graduating high school this year that he does not want to attend college. The parents supported the decision, but the son continued to also reject trade schools or offers to work in the family business.
"He said that he planned to use his college fund to start a business of his own. I said that I will allow it only if he takes some business management, accounting and law classes in the nearby community college," wrote the father. "I said that I would pay them out of pocket and not from the fund, and then I would expect a well made business plan before I would give him the money. My wife agrees 100 percent."
(Excerpt) Read more at msn.com ...
“don’t college funds carry certain tax ramifications?”
I’m pretty sure it depends on the structure of the savings, whether it’s just stashed in a regular savings account, or in an established 529 Plan or something.
I don’t know. Have never considered it since I don’t have kids. I have heard friends who have discussed it some.
I hesitate to answer fully. Each family has its own traditions. This is not how our family has operated generationally and I was shocked to hear of this tradition. There is a big difference between expecting 18 year olds to be diligent, have a goal and apply themselves and breaking a dish and telling them they get no more free meals in your house.
What a difference from my grandfather the shoe repair machine mechanic who could not read but put his sons through college and fed his wife’s brothers a dinner every night during the depression, their only meal of the day. My grandfather came from Italy without his parents at age 8. He never learned to read because he had to work but he supported his family & helped many people. His parents did their best for him by raising the money for his passage to America.
That’s what family means to me, we pull together. We expected to support our kids through college & graduate school. They took heavy course loads in the sciences and took part time jobs when they could, as did we during our schooling. What is more important not having the expense of feeding your son or having him have the time to apply himself to get good grades and a good job after school?
You can teach what respect is but you usually can’t get it unless you earn it. I say usually though because peers tend to have more influence on kids than we do at some point and especially for some kids. Then, at some point, it comes down to spouses and their influence and that doesn’t always turn out the way you hope it will.
Sad that you have to always keep them wondering for a very long time.
When mine would not cash the check I gave him is when I told him that made it the right thing to do all the more.
Interesting perspective.
When someone can afford to strike out on his own with his own money he can do so without answering for anything and accept all the consequences.
The tax benefits can be paid, there are provisions for that, it is still the old man’s money. It has his name and SSN on it.
If the love and respect is not thicker than the money it is a relationship and grandchildren I can do without. That is a tough position but in the long run it is the only position one can take.
Interesting perspective you have. I wonder where it comes from?
Just curiously did you do that on your phone or did Micro$oft spellcheck screw it up for you? ;-)
I (subconciously) typed that word out myself.
Of all things to write down!
A college fund is a 529. It can only used to pay college bills, including room & board for the named individual, sibs or close relatives. IOW the unused portion can be passed down.
The money grows without taxation in the account and if used for education the withdrawn money is also tax free. 529 plans are not used in calculating grants and aid.
The parent/grantor owns the plan not the named child. The plan was started by the parents so that they could help with college expenses not as a nest egg. The $ cannot be taken out to start a business without a 10% penalty and the withdrawal counts as taxable income as well if it is not used for school expenses. The boy has no right to the $ and if he is trying to pressure his parents they need to step back.
Didn’t know about this 529. Need to look at things.
Thanks. ;-)
Probably had something else on your mind. ;-)
Spell check on the PC or phone is crazy. Give me a real word on the left or right as the default not the “not a dang word in any language” that fills in when you hit space ...
/Rant
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