Comments on: Plan Your Estate Carefully http://www.mapgirl.net/mfc/2007/01/27/plan-your-estate-carefully/ Just tidbits about money and finance. Thu, 21 Aug 2008 04:20:31 +0000 http://wordpress.org/?v=2.5 By: mapgirl http://www.mapgirl.net/mfc/2007/01/27/plan-your-estate-carefully/#comment-7128 mapgirl Tue, 30 Jan 2007 14:35:13 +0000 http://www.mapgirl.net/mfc/2007/01/27/plan-your-estate-carefully/#comment-7128 I don't know! I'm still working for money! I don’t know! I’m still working for money!

]]> By: Clare Dedlock http://www.mapgirl.net/mfc/2007/01/27/plan-your-estate-carefully/#comment-7127 Clare Dedlock Tue, 30 Jan 2007 14:00:13 +0000 http://www.mapgirl.net/mfc/2007/01/27/plan-your-estate-carefully/#comment-7127 What ever happened to working for money? What ever happened to working for money?

]]> By: English Major http://www.mapgirl.net/mfc/2007/01/27/plan-your-estate-carefully/#comment-7120 English Major Mon, 29 Jan 2007 15:51:56 +0000 http://www.mapgirl.net/mfc/2007/01/27/plan-your-estate-carefully/#comment-7120 My (private) college also refused to allow students to return if they had no arrangements for payment. I think that's pretty standard. (I could be mistaken, but I didn't think that the schools collected interest on student loans, per the comment above--I thought that was reserved to the lender.) It doesn't seem to me that she wants to be Paris Hilton--she just wants to go to school. I actually did some quick research: a year of tuition and board at Southern Methodist costs $36,0000. Now consider that the $50,000 disbursement is taxed--subtracting a straight-up 20% brings her yearly cashflow to $40,000. I can see being irritated that with a $6 million trust fund, you can only spend like $330/month on all of your extracurricular costs: books, car, clothes, pizza, beer, et cetera. My (private) college also refused to allow students to return if they had no arrangements for payment. I think that’s pretty standard. (I could be mistaken, but I didn’t think that the schools collected interest on student loans, per the comment above–I thought that was reserved to the lender.)

It doesn’t seem to me that she wants to be Paris Hilton–she just wants to go to school. I actually did some quick research: a year of tuition and board at Southern Methodist costs $36,0000. Now consider that the $50,000 disbursement is taxed–subtracting a straight-up 20% brings her yearly cashflow to $40,000. I can see being irritated that with a $6 million trust fund, you can only spend like $330/month on all of your extracurricular costs: books, car, clothes, pizza, beer, et cetera.

]]> By: Matt http://www.mapgirl.net/mfc/2007/01/27/plan-your-estate-carefully/#comment-7098 Matt Sun, 28 Jan 2007 06:32:18 +0000 http://www.mapgirl.net/mfc/2007/01/27/plan-your-estate-carefully/#comment-7098 Delighted to hear you know full well the rules for supporting certain football teams from the Philadelphia area. As for the article, I agree that it's really an unfortunate situation that has arisen, and we likely do not know the full story, but I would support disbursement of the trust fund for tuition. I am also rather surprised at a university actually refusing admittance for owing too much debt. At the large state-based university I currently attend (which shall remain nameless,) I'm sure they would welcome a chance to earn more interest on student loans, especially with someone in her situation who will have the money to pay it back at some point. Delighted to hear you know full well the rules for supporting certain football teams from the Philadelphia area.

As for the article, I agree that it’s really an unfortunate situation that has arisen, and we likely do not know the full story, but I would support disbursement of the trust fund for tuition. I am also rather surprised at a university actually refusing admittance for owing too much debt. At the large state-based university I currently attend (which shall remain nameless,) I’m sure they would welcome a chance to earn more interest on student loans, especially with someone in her situation who will have the money to pay it back at some point.

]]> By: Enough Wealth http://www.mapgirl.net/mfc/2007/01/27/plan-your-estate-carefully/#comment-7091 Enough Wealth Sun, 28 Jan 2007 02:18:03 +0000 http://www.mapgirl.net/mfc/2007/01/27/plan-your-estate-carefully/#comment-7091 As usual this lawsuit is greed dressed up as a "necessity". She just wants a huge lump sum to blow, rather than a generous fixed income which the trust imposes (apparently for very good reason). If she really needed a bit more cashflow for the few years needed to complete her degree, she'd have absolutely NO trouble borrowing an extra $20K or so each year from a reputable bank. By the time she finished college and got a job (she IS intending to work? else why waste college resources on her getting a degree) she'd owe, say, $60K. The interest on this amount of debt would be less than 10% of her annual trust fund income, so she could easily pay it off in a couple of years just using her trust fund income, let alone from her own work. Like I said before - she just wants a couple of mil up front to "blow" on a Paris Hilton lifestyle. This is why if I ever end up in a position to be able to leave an estate to my heirs I'll definitely try to ensure they only get a portion of the trust fund earnings each year and can't blow the entire capital. I see no reason why my grand-kids or great-grandkids should end up with nothing if my kids turn out to be spendthrifts. As usual this lawsuit is greed dressed up as a “necessity”. She just wants a huge lump sum to blow, rather than a generous fixed income which the trust imposes (apparently for very good reason).

If she really needed a bit more cashflow for the few years needed to complete her degree, she’d have absolutely NO trouble borrowing an extra $20K or so each year from a reputable bank. By the time she finished college and got a job (she IS intending to work? else why waste college resources on her getting a degree) she’d owe, say, $60K. The interest on this amount of debt would be less than 10% of her annual trust fund income, so she could easily pay it off in a couple of years just using her trust fund income, let alone from her own work.

Like I said before - she just wants a couple of mil up front to “blow” on a Paris Hilton lifestyle.

This is why if I ever end up in a position to be able to leave an estate to my heirs I’ll definitely try to ensure they only get a portion of the trust fund earnings each year and can’t blow the entire capital. I see no reason why my grand-kids or great-grandkids should end up with nothing if my kids turn out to be spendthrifts.

]]>