Many individuals have the desire to pave the way for their younger family members educationally. Setting aside resources for college can be done in various ways, and the best choice will vary on a case-by-case basis.
The intelligent way to proceed is to sit down and discuss your unique situation with a northern Kentucky estate planning attorney who is apprised of all of the options that are available to you. When you do you will probably hear about 529 plans.
These are savings plans that have some tax savings mechanisms built-in. You contribute to a 529 savings account over a period of time, and along the way the assets are invested (generally in mutual funds) in an effort to gain appreciation. Once the beneficiary is ready for school, he or she can access the resources that have accumulated in the 529 college savings account.
The withdrawals will not be taxed as income by the Internal Revenue Service and this is part of the appeal. In addition, any appreciation that accumulates is not subject to estate tax provided the beneficiary does eventually utilize the resources to pay for higher education.
There is no better feeling than knowing with certainty that your younger family members will be able to achieve their full potential as human beings. To gain an in-depth understanding of your choices with regard to facilitating educational pathways simply take a moment to set up an appointment with an estate planning lawyer in the Covington, KY area.
John’s practice focuses on the use of Wills and Living Trusts in Estate Planning to help individuals protect their families and preserve their legacies after their deaths, but his practice also focuses on the critical issues of protecting individuals with dementia or other diminished capacity, assisting individuals in qualifying for Medicaid and other government benefits to offset the costs of long-term care, and providing special needs planning.
John is admitted to practice law in North Carolina, South Carolina, Kentucky, and Ohio, and he is accredited by the Department of Veterans Affairs.
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