As it is Thanksgiving and I'm european we went to my husbands family for the weekend and his parents had a surprise for our son, which is a massive trust fund and they wanted us to agree on the exact terms.
And well I don't want him to have that kind of money in his teens or 20s. I just don't want him to end up like this
And even if we raise him right, life IS different if you have millions to fall back to. I knew kids like that when I was growing up and despite their parents trying, they never got the value of honest work. So if you ask me we'd never tell him about the money and it'll be a nice surpise on his wedding day
Admittingly I'm a little torn on education. I do want him to have all the options but I also don't believe education should be for sale and I'd much rather have him go to a good, free university in Europe or work hard for a shloarship than spend 50k on a private school. But as I said, I'm not sure
So my husband and his parents argued that if we only make that money available to him when he is 30 and/or has kids, he couldn't use it for education. And well that's true, this whole thing is completley inflexible which brings to the question, why have it?
Why don't just keep money somewhere? In a bank account under mattress? We could get some interest for the next 10 or 15 years and see where to go from there?
Most Helpful Guy
Of course it's good to have one. The trust fund should be created as the foundation for your or your family's legacy. How do great families remain rich or well taken care of? They do it through a trust fund. I recommend that they set the trust fund where the money pays for his education and a percentage of the profits goes to him. The principle should not be touched. I say a certain percentage because if they continue to inject money into the principle, it will grow even more and thus, creating more wealth for your family. There should be a clause that states that the future generation also gets their education paid for along with a clause that stipulates only with a degree and a job can these kids receive a portion of the money earned off of interest.0
Most Helpful Girl
I think it's a great problem to have. Aside from getting into the whole is public education or state school as good as pricier universities, I think one Aspect of day an Ivy League school isn't so much the level of education but the connections that can be made for when entering the workforce where alma maters can be a who's who list of success stories. If the trust fund can help reduce your burden on putting your son through school as well as no long term student loans to contend with, what's the problem? Don't most parents want the absolute best future for their children? If you raise him right and with respect for an earned dollar/euro/whatever, isn't the trust fund just gravy?0