Parents money, their rules. The business idea does show he has some gumption depending on what business he plans to open. He seems aware college is not the end all for everyone. I applauded that. The dad’s idea of business training first is great plan for him. Kid could be self starter type and needs direction. Parents usually know what is best. So tell him get over notion the money is his, it is not an inheritance.
I would review IRS rules on using education funds for non education purposes. Not been down that road personally BUT something tells me deferred money has implications.
Sonny boy could be seeking a lawsuit with his new attorney and presenting the case before a leftist judge.
If it’s in a 529 plan, that money can be kept for another relative - younger child, niece, nephew or future grandchildren. If you want to use it for non-educational purposes, there is a 10% penalty on the withdrawal and income tax on the growth, not the principal.
Not pertinent in this case, but if a kid gets a scholarship, money equal to the amount of the scholarship can be taken out of the 529 with no penalty in the calendar, not academic, year it was earned.
I don't mean to insult you with this, but that line is so far from the truth that it may as well be in a parallel universe. Some "parents" are so stupid that it's a miracle their kids make it to adulthood. Whether they're able to function independently is an entirely different story.
Those that don't have at least one pitbull, who they leave as a babysitter for their kids when they go on a beer run at 8 AM.
If the kid were going to take out a business loan for the same amount, he’d have to show his cards and have a plan. The parents should have an idea of what he’d do with it since they raised him from a pup, so sounds like that’s where the conditions are coming from.
Good point about the tax rules. That sort of thing would be worth speaking with someone about if they haven’t already.