OK guys I need your help with a couple things

[Sean88gt]

Seb, I'll find you at the service or at the meet before. Basically just have someone we trust (Suzy?) setup a 529. Whoever establishes it will control those funds. We'll talk about investment options as well. I'll give my contact info to whomever we decide controls the funds. I'm assuming it'll be the boys' mother.

The woman he was divorcing?

[Joe Wiecked]

The woman he was divorcing?

She is the mother of the boys.

[Sean88gt]

She is the mother of the boys.

Yeah, and? I would find someone, a grandparent for example, that is likely more impartial and won't use the cash as the child support she won't receive now.

[SEB]

I have been contacted by other memebers of the family on this issue as there is a concern with his ex wife having access the money and they want to see the money go in to a account that only the boys can have access to once their of age.

We are over halfway there to the goal of $6000 for the boys and I know Mike would want his boys to have the money for their education. My idea was to invest the money in a mutual type fund that would only be able to be accessed once they fund matured to it complete max and after that time period the boys would be old enough to have access to this money.

I just dont want to get in the middle of the politics of the family

[Sean88gt]

I have been contacted by other memebers of the family on this issue as there is a concern with his ex wife having access the money and they want to see the money go in to a account that only the boys can have access to once their of age.

We are over halfway there to the goal of $6000 for the boys and I know Mike would want his boys to have the money for their education. My idea was to invest the money in a mutual type fund that would only be able to be accessed once they fund matured to it complete max and after that time period the boys would be old enough to have access to this money.

I just dont want to get in the middle of the politics of the family

That was exactly my thought.

SEB, I don't know anything about it, but have you looked at the Texas Tomorrow Fund? Check it out. http://www.texastomorrowfunds.org/

[SEB]

That was exactly my thought.

SEB, I don't know anything about it, but have you looked at the Texas Tomorrow Fund? Check it out. http://www.texastomorrowfunds.org/

Sean I will give this a look. Going to touch base with Slow99 after the first of the year and let the fund runs its course till the 5th of Jan and then work on putting the money in a fund for these boys that they will only have access too!

[talisman]

I would NOT give the money to the ex-wife. Put it in a trust where they'll receive it when they're 18 or something. Hopefully there is also a way to make sure it is used for college expenses.

[SEB]

I would NOT give the money to the ex-wife. Put it in a trust where they'll receive it when they're 18 or something. Hopefully there is also a way to make sure it is used for college expenses.

Not sure if I can insure the money used for College expenses. But would like to see it invested in a fund that will mature in 10 years taht way when they are grown men they will think of their Father and the men that made this fund happen for them

[John -- '02 HAWK]

My idea was to invest the money in a mutual type fund that would only be able to be accessed once they fund matured to it complete max and after that time period the boys would be old enough to have access to this money.

You may want to have some money become available next Christmas time to make the season a tad more enjoyable on what will probably be a sad time for the boys

[Sean88gt]

You may want to have some money become available next Christmas time to make the season a tad more enjoyable on what will probably be a sad time for the boys

Maybe not a bad idea. I hope the best for those boys, but Mike took a really shitty exit, at a really shitty time...assuming arguendo that he committed sideways.

[SEB]

You may want to have some money become available next Christmas time to make the season a tad more enjoyable on what will probably be a sad time for the boys

Guys that is AWSOME IDEA! I will leave this up to the board as a decesion

[SEB]

Another crazy idea! But what if we put the money in a account. Something the whole board could see. With Mike being in to cars. What about the board buying the boys each their first car?

[Ruffdaddy]

That's a bit ambitious...but an awesome idea.

[SEB]

That's a bit ambitious...but an awesome idea.

I agree! Just thinking outsie the box. I feel honored to have put the account together. But there is some issues with his Ex and the family being worried that it gets used on the boys. Hence with all of as a board who did this I want to hear what the board has to say

[slow99]

Here's what I know about the types of accounts available (this is not my area of expertise, anyone is more than welcome to chime in ... sc281 probably knows more about this).

To ensure that the funds are used for educational purposes, you could:

1. Establish a 529 account. This account is funded with post-tax dollars and faces no further tax consequences as long as the funds are used to pay for educational expenses of the party for whom the account was established. If not used for approved expenses, the person who established the account owes taxes on gains in the account. This account requires someone who is trusted to establish and manage the account. There is no stipulation that says only the boys can use the money. A party could use the money; they'd only owe the taxes on the gains.

2. Establish a trust account. Someone could setup the account with the boys named as beneficiaries and only the boys could be the ones who access the funds. I don't know how the mechanics would work as far as directing that the funds be used only for certain expenses (ie educational only). I do believe there are such things as educational trusts, but I'm not sure how they work.

I will work with whomever I need to to think about investment options once the structure of the account is decided. Some conservative "income" type allocation is likely the way to go. Seb, they have target date funds that could have a maturity date of 2020, 2025, 2030 etc, but those only vary by the way they allocate the funds. I don't know of any way to invest this in a "fund" for the boys that specifically matures at XX date. I can setup structures to replicate any of those funds without having to invest in a particular target date fund.