Consider All Your Options
Many parents and grandparents set up a trust to provide for their children’s or grandchildren’s education. Such trusts typically provide instructions to the trustee to preserve a percentage of the trust assets exclusively for higher education. Another option though is available for parents and grandparents alike which can provide greater tax advantages and can offer flexibility.
529 College Savings Programs
A 529 College Savings Program is a tax advantaged program which allows relatives to invest in a fund sponsored by state agencies or educational institutions. The money can then be used for higher education expenses including tuition, room, board and books. When the money is taken out and used for education expenses, there is no federal income tax assessed to the student. The money can also be used for other expenses, but there will be income tax assessed in those cases.
Getting Legal Help
When deciding how to provide for your children when you are gone, there are many options you should consider. Experienced Estate Planning Attorney Elga Goodman can help you prepare an estate plan which includes financial strategies to preserve assets and protect your loved ones. Contact us today at 973-841-5111.
Posted in: Estate Planning, New York Estate Planning