You have always valued education. You passed that view on to your children, and you hope that your grandchildren will have the same love of learning. You know that the world can be improved dramatically with increased education, and you’re doing your part.
As you set up your estate plan, you begin wondering if there are ways to promote higher education for your heirs or make it feasible. Considering that the average student loan debt is nearly $30,000 for just a four-year degree, this may be invaluable for heirs who could not have afforded it on their own.
Using a trust: The benefits
There are multiple ways you can approach this. Some people just leave their heirs cash assets and a note in the will that they should use it for education. Others set up special savings accounts that are geared around education directly.
Since you are planning ahead, the best option could be to set up a trust. The trustee can then be instructed to only allow the money to be used for costs directly related to education — books, tuition, supplies, room and board, etc.
In this way, you do give the money to your grandchildren, but you also ensure that they can’t just spend it on whatever they want. They must use it for education, and you know that the money you have worked so hard for is really going to benefit them in a fundamental way.
Setting up your plan
If you have specific goals like this, you need to know all that you can about creating the right estate plan, one that addresses your goals and makes them possible.