College is extremely expensive and the cost keeps rising. Parents and grandparents routinely struggle with how they will pay for their children or grandchildren’s college education. If you plan ahead, you can make paying for the college education a part of your larger estate plan. You have many different options.

The traditional way to pay for a college education is by setting up a Trust. This allows you to set up the account long before it will be needed and let the Trust assets earn interest. However, there are other ways to pay for college if you have not planned far in advance. Parents and grandparents can directly pay tuition to the education institution. Money paid directly to an accredited school is not subject to the gift tax. You can then give living expenses to the student directly up to the gift tax limit. Another option is to set up a 529 college savings plan. However, like a Trust, that should be done long before it is needed.

Paying for college is important and most people want to see their children and grandchildren go to college without having to worry about how it will be paid for. Talk to an estate planning attorney about making your loved ones’ college expenses part of your estate plan.

Davidov Law Group is a member of the American Academy of Estate Planning Attorneys.

Creating an estate plan doesn’t only have to include making difficult decisions.  When creating your plan, you’re able to make choices for the future.  This includes having the opportunity to have fun with some of your planning decisions.  Take a look at the information below, to see how you can have some fun with your estate plan.  If you have any additional questions, or if you’d like to begin creating your estate plan, contact an estate planning attorney.

• With your estate plan, you’re able to give to back to a favorite charity.  This can be a great way to benefit an organization that you’ve always loved.  Many people choose to give to an organization that has had an impact on their family or friends.  This may include gifting to Susan G. Komen for the Cure or the American Cancer Society.  If you choose to gift to charity, carefully consider an organization that is special to you.
• You may also choose to give to your loved ones in a special and meaningful way.  Many people choose to leave assets for their loved ones so that they’re able to achieve their goals.  You may decide to leave asset for a grandchild to attend college or for your daughter to fund her career ventures.  This can be a great way for you to make an impact on your loved one’s lives while also leaving a special memory along with your gift.

Creating your estate plan doesn’t have to be an upsetting process.  While you will be forced to make some difficult decisions, there are also many other things that you can do with your planning.  If you have any questions about fun and creative things you can do, consult with a qualified estate planning attorney.

Davidov Law Group is a member of the American Academy of Estate Planning Attorneys.