Inheritance due to death

My wife's mom passed away last december '03. This March her dad told her that her mom has left her $100,000 to help pay for our (2) childrens college costs. Our son will be starting college this sept. When we applied for FAFSA we did not know about the money. My son recieved $3500 reduction based on our FAFSA report. How can I deal with the new found money without losing the $3500 reduction from the university. Athe the moment the acount in in my wifes dad's name.

Bartnav,

Sorry to hear of your MIL's death, but she had her heart in the right place.

Your title, "Inheritance due to death" gave me a smile. How else can we have an inheritance?

This inheritance is not reported on the FAFSA until you actually receive the money. It would be best if Grandfather held the money until graduation, then paid off student loans.

Here is a link to a discussion with some ideas on how to best arrange family finaces to maximize student aid. [http://www.finaid.org/fafsa/maximize.phtml]

But isn't student aid for the students that need the financial aid?
If a student or a student's family has the assets to pay for the college they should pay.

Hi again,

Out of goodwill, you can give up the $3500, so that
those who need it the most will get it.

However, it is what your heart desire. What is $3500
compared to what their grandmother left for them.

Just do what you believe in your heart is right for you
and your children.

Caroline