Many clients ask us about how to plan and to save for college as part of their estate planning, asset protection planning, and tax planning. In our Enhanced Estate Planning Process (TM), we focus on the many ways that families can protect assets for the things that are important. And, lifestyle, family values, and educating the next generation rank high on the list. And, when you plan properly, you can protect assets from your creditors and for your children and grandchildren. You can also get these assets out of your estate for tax purposes, and you can make sure that they get used for educational purposes and not for unrelated reasons.
Because the economy has robbed many people of the assets that they were going to use, many grandparents are also looking for ways to help children and grandchildren with these extraordinary expenses.
Obviously, the sooner you plan the better. But, it is never too late.
There are several types of 529 plans, UTMA accounts, individual trusts, and other tools including outright gifts that can be used. However, a comprehensive plan should be thought out before you start with the trouble and expense of any particular technique. And, there are many pros and cons to 529 plans. Finally, you need to understand how these plans invest and work.
I recently discovered a great resource to use in calculating and planning for college. Many site are set up to sell consumers a product or service. This site is just jammed with resources, calculators, and information. Just click here to visit the FINRA college resource center.
We also post articles on these and related topics at Pennsylvania Estate Planning.
I also wanted to remind you of a new service that we are offering for our clients and prospective clients.
If you would like our regular “HOT TIP” that you can use each week to save tax dollars, avoid probate, make your will actually work (most do not), or protect your assets, then follow David M Frees III, Esq on Twitter. Just click here.
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