Saving for college through estate planning

On Behalf of | Aug 17, 2020 | Probate And Estate Administration

The idea of helping the kids pursue a higher education is a goal that may be shared by many parents in Nevada and across the nation. With the ever-increasing costs of tuition, starting to save for such an endeavor at an early stage could prove imperative. Parents may find it helpful to know that there are certain estate planning options that could prove helpful in such a scenario and seeking insight on these options could prove vital to helping ensure this dream comes to light.

There are several estate planning options that could help a person save for college tuition. In some cases, one could consider placing funds into trust as a gift in accordance with the Uniform Gifts to Minor’s Act. One could also consider seeking insight on 529 programs, as there could be certain tax benefits to choosing this route over the alternative.

According to experts, 529 programs come in two different types, which include either prepaid or savings plans. With prepaid programs, one may be able to purchase tuition credits at the current tuition rate, even if his or her child will not be attending college for some time, which could prove helpful should prices of attendance continue to rise. Savings programs may act more similarly to investment accounts, as the amount covered by a 529 savings account might be affected by the performance of the investment.

With various topics to address and options to consider, choosing the correct estate planning tools to help save for college tuition can seem a daunting task. Those who wish to better understand the possible advantages and disadvantages of each of their available options could benefit from consulting with legal counsel prior to choosing a path. Such guidance could help place a person in Nevada in a better position to make informed decisions concerning the future during the estate planning process.