Q: I began saving for my two sons’ college education 18 years ago through UGMA accounts, whose funds revert to the beneficiary at 21. My older son attends a state school and could have $100,000 remaining when he graduates. My younger son will likely go to a private school and perhaps grad school and could deplete his account. May I ask my older son to share his remaining money with his brother? — Name Withheld, Seattle
A: You may. You wanted to provide for your sons’ education, not give each a bucket of cash to cover college and then, if any remained, finance their post-college high life. Ideally, your older son will honor your wish, but I could understand any reluctance. From his perspective (and the law’s), it’s his money. And he might wonder why he’s being penalized for participating in our fine public-education system.
It would be great if you could rearrange your finances to reflect your intentions, but that is unrealistic. You should, of course, consult a lawyer, but an accountant, Curtis Arluck, told me, “There is no way I know of for the father to legally get the money back or to redirect it between the sons. This is basically akin to the ‘Jackie Coogan Law,’ passed after the child actor’s parents stole all his money.”
The time to talk to both your sons is now, while their education expenses remain uncertain. Who knows who will have money left over? No matter the outcome, comfort yourself that, when it comes to parental largess, even thoroughgoing generosity can leave the recipients bitter and resentful. That’ll teach you to be a responsible parent.
Q: My friend wants to run an ad in local weeklies: “Believe in Jesus? Please send $1” with the address of a post-office box where people can reply. She would not use any money she received to advance Christianity in any way, but she makes no explicit claim to do so. Is her plan ethical? — Christine Proctor, St. Louis
A: It depends. If your friend intends to provide believers with an ecumenical opportunity for Christian charity, albeit by receiving their money, no problem. There’s nothing unethical about asking strangers for help. She paves their way to heaven by allowing them to put their money where their faith is, to divest themselves of worldly goods a dollar at a time.
But if your friend intends to gull the unwary into thinking that their money will finance some Christian endeavor, evangelizing or the like, then she is deceitful and her plan unethical. In both cases, the desired action is the same: Strangers send her money. The morality of her plan is determined by her intent. What this plan most seems is dimwitted, or at least overly hopeful. I’d be amazed if your friend recouped the cost of the ad and the post-office box.
