Parents in Nevada and throughout the country may want to leave money to their children for educational purposes. Generally speaking, this is best done by creating a trust. Individuals can choose between a pot trust or creating a separate document for each child. With a pot trust, all the beneficiaries will request money from one lump sum until there is no more money left. However, this could mean that one child gets more than his or her siblings.
There may also be issues with a pot trust if siblings are significantly younger than each other. When the youngest child is old enough to go to college, there may little or no money left to cover his or her educational expenses. By creating separate trusts, there is a set amount of money that is available to each child. However, this may not necessarily leave enough to cover the entire cost of a child’s college education.
Parents who want to obtain as much flexibility as possible may want to look into a 529 plan. While it limits a parent’s control over how funds are used, it typically does a better job adjusting to a student’s needs over time. Therefore, there is a greater chance that a child has the financial resources necessary to get a quality education no matter when that happens.
Going through the trust planning process may make it possible for parents to provide for their children and create a legacy for themselves. Working with an attorney, parents can decide whether to provide for their children equally or in some other manner. Having a legal representative also helps to ensure that documents are created properly and can stand up to legal challenges. Ideally, trusts will be reviewed periodically and altered if a person’s needs change.