Using Trusts to Fund Education for Grandchildren

As a grandparent, you may want to leave a lasting impact on your grandchildren’s future. 

One effective way to do so is by using a trust to fund their education. 

Here’s why it’s a smart and strategic choice:

1. Tax Benefits: Establishing a trust for educational purposes can provide significant tax advantages. 

You can contribute to the trust without incurring gift tax, and the funds can grow tax-deferred, allowing for more substantial contributions over time.

2. Control Over Distribution: With a trust, you can set specific conditions for when and how the funds are distributed. 

Whether you want the money to be used for college tuition, private school, or specialized education, a trust allows you to ensure it’s used as intended.

3. Preserving Financial Aid Eligibility: Unlike direct gifts, funds in a trust may not count as assets when your grandchildren apply for financial aid, preserving their eligibility for need-based scholarships and grants.

4. Peace of Mind: A trust allows you to ensure that your hard-earned money is used to support your grandchildren’s education, regardless of future circumstances, and protects the funds from mismanagement or unnecessary spending.

By setting up a trust for educational purposes, you can provide meaningful support for your grandchildren’s educational journey and leave a lasting legacy of knowledge and opportunity.

We specialize in educating and helping you protect what you have for the people you love the most. Contact us to learn more about how we can help.