Robert J. Kolasa, Ltd.
Estate Planner, CPA & Former IRS Attorney
Funding College Education through Custom Drafted Trusts
Many clients (parents and grandparents) are deeply concerned about the escalating costs of college and post-graduate education for family members, and how these costs may impact their overall financial and estate planning objectives. If you have college-bound children or grandchildren, you should be aware of planning technique that can pay for educational expenses, solve income tax issues, and provide an important piece of your estate plan.
The approaches to fund college costs for family members may revolve around one of the following estate planning techniques:
Intervivos trusts established during a client’s lifetime, funded with $14,000 annual exclusion amounts and/or larger contributions which utilize part of your estate tax exclusion amount
Testamentary trusts established at death, funded by fixed dollar amounts or a percentage of total assets
Unlimited exclusion for gifts directly to school or medical providers
UTMA (“Uniform Transfer to Minor”) Accounts
College 529 Plans
Specialized trusts making educational payouts based on the family’s particular financial and family needs
Robert J. Kolasa, Ltd. has significance experience in establishing specialized educational trusts for family members. These trusts are expertly drafted to taking into account the family’s particular financial and family needs. Why not provide for the younger generation to get a beneficial education and ensure that he or she becomes a productive member of society?