Contrary to popular beliefs, estate planning is not just a tool for confronting your mortality. It also forces you to decide how you can use your estate and what benefits would your heirs gain from it. An estate planning lawyer near me 11569 can aid you in properly assessing your financial situation and plan your estate as per your needs for covering the costs of your child’s education.
A child’s education is generally one of the most prioritized issues that every parent faces. In the current world, the cost of education is at a record-breaking high, and most parents want to provide the best education to their children that aligns with their financial capacities.
Plan your Kids’ Education Costs with your Estate Planning Lawyer
There are several options that an estate planning lawyer near me 11569 can provide towards saving for children’s education. These methods and procedures provide several benefits to both the parents as well as the children in the long term. Yet, you must give careful consideration to the use of funds through proper estate planning with the aid of a proficient estate planning lawyer near me 11569. Following provides a detailed explanation of the various provisions that you can consider while undertaking estate planning to aid your children’s education costs for schooling and college.
529 Savings Plans through an Estate Planning Lawyer near me 11569
Parents can plan their estate beforehand and use the 529 savings plan to save for their children’s education with the exemption of tax. This plan is state mandated and provides for a deposit of an annual amount of $14000 in the account towards educational purposes without any liability of gift tax. In addition to this, parents can also Superfund the plan for up to five years where the students may also withdraw without any tax implications.
There is a significant rule of including the 529 savings plan in the estate plan for it to provide children with access to funds when they need it.
UGMA/UTMA Accounts through an Estate Planning Lawyer near me 11569
At the time when you establish an UGMA or an UTMA account, the money put in for covering children’s education costs is to be an immediate gift without any potential tax implications. Yet, this money cannot be immediately accessed by the students. Instead, a guardian will hold the account and give it to the child after the child reaches a stipulated age.
An Estate Planning Lawyer near me 11569 can aid in creating an UGMA account for easy transfer of funds for education costs. However, these funds, once added to the account for a child’s educational expenses, you cannot reallocate them towards other benefits in the future . Still, this does not mean that these funds remain to be education-specific. The funds will be at the accessibility of the child and he/she may use it however they please.
Trusts through an Estate Planning Lawyer near me 11569
Trusts act as financial aids for children’s education costs in a more dynamic way. With Trusts you can decide how to spend them. Also, they provide you with flexibility of change in the future. Creating trusts is a great way of estate planning and you can use them efficiently for the educational finance of children. Although trusts are not specific to education, they provide extreme flexibility. Trusts can prove to be a good alternative towards saving for your child’s education.
An estate planning lawyer near me 11569 can aid in creating a trust to provide you with many options about who will manage the funds, how you will make the contributions, when and who will be able to access the dunda, etc. These provisions make trusts an exceedingly reliable form of estate planning towards education costs.
With regards to your personal and financial circumstances, any one of the aforementioned choices may be the best for you while planning to cover your child’s education costs. Generally, the 529 savings plan is more popular amongst parents due to the reason that it provides better and inexpensive options. However, a trust fund may also turn out to be appropriate due to its high flexibility. Both of these options may turn out to be better than establishing a UGMA Account. If you require a good estate plan which is inclusive of a plan for your child’s education costs, you can always collect more information about the best estate planning lawyer near me and make smart financial choices.