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GIVING AN 18 YEAR OLD $90,000 AND TELLING HER IT’S UP TO HER TO USE IT TO PAY FOR COLLEGE MAY NOT BE THE BEST IDEA

7/22/2015

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I don’t know any of the details of the story, but the way it has been described, a 22 year old college student was given $90k by her grandparents, spent some of it on stuff other than school, and is now broke and wants her parents to give her the funds she needs to finish school.  
I’m going to ignore the problem of what should happen now.  My focus is on what should have happened four years ago.
What should have happened four years ago is that her grandparents should have arranged the gift of the money so that it would be controlled by a responsible adult.  This is not complicated.  A good estate planning attorney can set up an appropriate arrangement.  A good financial adviser can also help with a plan for such a situation.
On the other hand, if the student’s grandparents wanted to give her a life lesson, maybe their approach wasn’t so wrong, assuming that she now figures out where she went wrong and what to do about it.  But if her parents bail her out like she wants them to, I don’t think they are doing her any favor.

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