Should I create a trust for my children's college education fund?

April 11, 2008

Posted by knor208

( 0 ratings )

The easiest route is to look into a 529 plan. Each state has one and you can use any state's plan. A 529 plan is one of the few ways to name a beneficiary but keep control of the funds while at the same time the funds are not considered part of the givers estate. In essance you maintain control of the fund but it is outside of your estate for tax purposes. you can also change beneficiaries and, other people can contribute to plan. Most of the plans have a max contribution amount over the life of the plan but most of the time it is anywhere from 100,000-250,000.00. Many state also offer a tax credit if you are a resident of that state. Most of the plan's tax credits have income restrictions etc. However 529 plans are one of the best vehicles if not the best for savings for your childrens educations

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