Have I made a big bad mistake?

[HHM]

I didn't mean to be harsh, and I apologize if it came of that way. The discussion has taken two tracks, (1) that there are priorities and given two choices between college and certain necessities, the necessities win out. (2) but once you have committed to one or the other, you should find other means to deal with issues as they arise.

If the choice is between brakes on your car and "contributing" to your child's college fund, and there is NO other way, then fix your brakes. However, that is not the situation you presented us; you have already made a choice a while back to start a tax exempt college fund. My point is, that once the money is IN THE FUND, it should not be touched. So in that sense, I think it was a little cold hearted to go back on that commitment. And let's be fair, I think your being a little melodramatic about the brakes and the danger that is really posed, and I think you are doing so because you probably do feel guilty about raiding the college fund so you rationalize it as a mater of "life and death".

So, having got that out of the way, I think you will need to tell your attorney so he/she can make an informed decision, but I don't think it will be a problem because fixing your brakes is a necessity.

[CindyLou]

If you are worried about having taken the money for necessary expense don't worry. Bk planning is legal. For example: you have 5000.00 in the bank and don't have an exemption for that money. So you use it for a new roof for your house because your roof is leaking. You then use your homestead exemption to cover the added value on your house. Its ok. Spending money on necessities is not hiding the money. You did what you had to do to take care of yourself and your family. Now, if you take the money and go on vacation to Hawaii, now that a completely different story!!

[Spartan]

... Now, if you take the money and go on vacation to Hawaii, now that a completely different story!!

Maybe you can get your counsellor to write a letter stating that you needed the trip for therapeutic effect for your mental/psychological wellbeing?

[niteflytes]

Just a follow-up. I do not feel guilty. I discussed the situation with my daughter and she agrees that the brakes are important and the house payment is important and she is confident that I will put the money back in her college fund as soon as possible. She obviously has a lot common sense and compassion and I'm very proud of her.