The Benefits of Setting Up Education Trusts for Children
It can feel like a heavy responsibility to prepare for your child’s future and ensure they have access to quality education. Saving up for your children’s college careers is one of the things that many parents hope to achieve. But where do you keep the savings? How do you make sure the child knows it’s for their college fund?
Let’s walk through the benefits of arranging education trusts for your children.
3 Benefits of Education Trusts
Unspecified savings can quickly dwindle to pay for a broken air conditioner, a kitchen renovation, or a car upgrade. Creating education trusts will help you prioritize your funds and ensure the money is ready to use when your children reach college age.
1. Keep the Money Separate: Setting up a trust allows you to set the money aside in a place that is out of sight and out of mind. Then, you can contribute money to the trust over the years. The funds inside the trust can grow as your income increases, or you can contribute the same amount each year.
2. Specify Disbursement Options: You have the opportunity to parcel out the money according to your child’s age, each year completed in school, or academic achievements. Once you have specified your qualifications for receiving the money, you won’t have to worry about the money falling into irresponsible hands.
3. The Trust Will Live On: Even if you were to die or become incapacitated, the instructions in the trust would remain valid. The trust will not change. You will not have to divide the money or enter probate when funds are in a trust with specific instructions for distribution to the beneficiaries.
Reap the benefits of creating an education trust for your child. They will be so grateful for your careful planning and generosity.
Our team at Miles & Hatcher, LLP, can help you prepare for the future by setting up education trusts. First, list your guidelines and how you would like to distribute the money. Then, you will not have to worry about your child’s education. Call to arrange a free consultation: (909) 481-4080.