[masraum]

Wow, I can see why you said "let me get back to you." My first thought was "parent covers legal costs or any out of pocket costs due to this issue, and anything left over is put in some sort of account/trust for the kid for later. Then you said that the "kid" is 20. I think that changes things (legally). There's a difference between what's right and what's legal. What are the odds that the kid could/would try to sue his parents for the money.

And yes, I know a kid that got an inheritance when he was a kid, and he blew through it.

I think the "best/right" solution is for the parents to cover their costs, and then put the money in some sort of account for the kid that he can't get to right now. But I'm not sure if that would be legal if it came down to it.