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I agree with you Anthony creating an irrevocable trust is a better way control the funds Amber receives
over a college 529 plan because Amber can use the funds from the trust for whatever she need to use
the fund for however the funds from the college 529 plan can only be use for college tuition and
expenses.
I would suggest that Cody set up irrevocable trust and set stipulations in the trust that Amber will only
receive an income stream from the trust until she is 40 years old unless she graduates college and at
that point she would have access 90% of the funds in the trust and 10% of the funds is transfer to a
charity at that point. If Amber doesn’t go to school and graduate I would give her until 40 years old to
get her degree and if she doesn’t I would leave the remaining balance in the trust to charity.
To fund the trust, I would use the $28,000 max gift amount every year until the fund is fully funded I
would also set up a transfer on death trust to fund the trust with additional money once Cody is no
longer living to avoid probate.
I agree with you Greg there is nothing showing that there was a will prepared and that could help with
all the confusion to who gets what. I think it would be a good idea leaving the different property in a will
because it is simpler to transfer the property that way; however, to avoid probate I would advise Cody
to create a transfer on death trust for his cars, boat, and other property.
