I have two young school age children who are recieving survivor's benefits from their father (who tragically passed away in his mid thirties). I have to fill out a report to SSA once a year stating how much I have saved for the children in a separate account. I thought this was a fine idea, as I have heard first hand from an adult friend how she wished her mother would have saved some money for them (simiar circumstances).
Now, I have learned today that once the kids turn 18, SSA will send me a letter, telling me to send all of that "savings" back to them, and they will cut my child a check. I have that money in a college savings (529) account, and a regular savings account. I am worried I will owe taxes on the 529, or that my children will not use the money as I would prefer them to do (i.e. college dorm, books, food, car vs beer, $200 jeans, bar tabs for friends).
What should I do???!! Thank you for your help