Robin: "Kids inherit money. We don't want it."
By Stephen K Lehnardt
Parents of future and current college students understand the dizzying math challenge of paying for higher education. To attain the best result, the calculus of financial aid divides between have and have not without mercy. Unfortunately for parent and student, the type of income received has a dramatic influence on both the availability of financial aid and the ease with which it is attained.
In other words, sometimes an inheritance can threaten the financial aid and college degree of a young person—especially if family issues are at play.
This is the story of “Robin” as relayed in a recent Forbes article titled “An Inheritance That Could Foul Financial Aid.” Truth be told, Robin’s story and her children’s potential difficulties with financial aid is as much a story of family disagreement as it is of grumpy institutional curmudgeonry. Nevertheless, it is valuable considering Robin’s story of family disagreement and the details a FAFSA will sniff out, even if those details are not available and true.
Even more important is to understand that different assets, inheritances and gifts have a serious effect on financial aid, taxation and/or financial viability for higher education.
If your goal is to financially assist loved ones through college, then there are some very specific types of gifts to consider without jeopardizing financial aid in the process.
For more information in Liberty, MO and the Kansas City Area about how to assist without harming financial aid, and to access free information and tools to organize your estate, visit our estate planning website.
Reference: Forbes (November 18, 2013) “An Inheritance That Could Foul Financial Aid”