I'm sorry if this is the wrong subreddit but I wasn't sure where else to ask. I figured this would factor into my finance calculations so maybe it’ll work here.
A little personal backstory: my mom was a real estate investor right at the height of the real estate bubble in California. She worked hard to finance these over-priced properties and told me one day that her ultimate plan was always to sell the houses and use the money to put me and my sibling through college.
Sadly she bought in at the wrong time and wasn't able to sell the houses. Instead she resorted to doing what she could to keep them afloat; renting the houses, managing other properties, and even delivering newspapers from 1-6 AM every morning. From my observations, she slept maybe 3 hours a night, working the rest of the day to provide for us and keep her college funding dreams afloat.
Fast forward to my first year of college, me sound asleep in my dorm when I'm suddenly awoken by a phone call at 2 in the morning. My mom was the victim of a hit and run. She didn't make it.
Since her passing, I've been trying to figure out a way to memorialize her memory and pay her efforts forward. One day an idea popped into my head. She worked so hard to try and get us into college, what if I helped provide for others in the same vein? What if I created a small scholarship, say $500 a year to start? It's not much but for many college bound students, every penny counts.
I asked a tax advisor about this and at first he was excited to help. . . until he realized I wasn't a millionaire with deep pockets. He simply told me it “wasn't worth my time” (his exact response), I'd be better off just donating to a single school, and sent me on my way.
Thing is, this idea is still firmly glued in my mind. I guess you can say the adviser’s “reasoning” wasn't enough to dissuade me. But I have to ask, is he right? I'm assuming “not worth my time” means too much work/cost to setup and maintain. Would the setup and maintenance of such a seemingly small endeavor be just too burdensome for someone to maintain on their own?
I live in California and earn about $70k a year. I'm also the primary earner for my family. I'd be paying for everything out of pocket. I'm clearly not rich but I figure I can afford $500 a year as the scholarship payout plus a little more for business/tax-type fees. But are these fees really that big to “not be worth my time”?
Any explanation of the adviser’s point of view or other advice would be incredibly appreciated.
TL,DR: Want to start a small scholarship fund in honor of deceased mother but am not rich. Tax adviser shut me down but without further explanation. Want to know for sure if its possible or if my dreams are really dashed.
edit: I forgot to clarify, the reason I don't want to donate directly to a school is I want to be sure every penny goes directly to the student's expenses.
Submitted December 14, 2018 at 03:07AM by khoa152 https://ift.tt/2RZZGRM
