if that is indeed the kids college fund, and if its in his name, and the parents benefitted from lesser taxes, then its the kids money.....
they will loose a son and their grandchildren as well....
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?
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The money grows without taxation in the account and if used for education the withdrawn money is also tax free. 529 plans are not used in calculating grants and aid.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.