Education Trust?

Pedro Tercero · #1 01-30-2008, 01:00 PM

I'm interested in starting a fund for the education of a couple of 11-year-old Dominican children. I'm only thinking of putting in US$5,000 for now, and building it slowly over the years till they're out of secondary school (about 18 years old.) I'm concerned that if the money goes into savings accounts in their names for future use for tuition, it may be used for other needs instead. The kids' parents seem to be pretty responsible people, but financial emergencies do come along. A trust seems like overkill for this amount of money. Is there an in-between approach?

Thanks, Pedro Tercero

fightfish · #2 01-30-2008, 04:09 PM

Why not just place it in a cd or other low risk fund and let it acrue until the kids are old enough to use it? I wouldn´t put it in their names or their parents just because of the temptation to use it for something other than education.

RandyE · #3 01-30-2008, 08:33 PM

Ihave an account (MUCH Smaller than 5K) with a finance house for a friends son, started when the boy was born. Every year I put some more in. Account is in my name as a trustee for XXXX, thus keeping the parents (who are very poor) from using it in an "emergency". When the boy turns 18 I'll release the money for college, I hope.

Pedro Tercero · #4 01-31-2008, 10:44 AM

Fightfish (I like that name) and Randy E,

Thanks for the input. They're both useful ideas but I was looking for a way to assure that if something happened to me, the funds wouldn't become part of my estate and would still be used as I intended. Any further thoughts?

Thanks again,

P3

RandyE · #5 01-31-2008, 08:20 PM

Sounds as though you need an appointment with a Dominican financial advisor, if one exists. With all the residents on this board one of them should be able to point you in a suitable direction. Can't change the world but some of us do try to help change a life or two.

Chip · #6 01-31-2008, 11:37 PM

Assuming that you are sending them to a private bilingual school, just pay the semester's tuition up front and have the parents buy the school supplies and then send you a receipt so that you can pay them back.

Fabio J. Guzman · #7 02-02-2008, 09:48 AM

Include a provision in your will instructing your heirs to pay $x toward the child's education upon your death. In the meantime, while you're enjoying life, pay the kid's education directly.

Pedro Tercero · #8 02-04-2008, 03:30 PM

Thanks, all -

Now that the expert has provided such useful advice, the input is likely to halt, so thanks to all of you for your suggestions.

P3