For many, being a grandparent is something they look forward to when their own children get older, as they’re excited to go the extra mile for their grandchildren. One thing many grandparents take seriously is their grandchild’s education, as they want to do everything to help their grandchild excel academically through estate planning. If you’re looking to help pay for your grandchild’s education expenses, a Pasco County, FL estate planning attorney can help you explore the options available for you and your family.
What Options Do I Have to Fund My Grandchild’s Education Expenses?
If you’re looking to pay for your grandchild’s education, you may be pleased to know there are a few options available. However, each choice has its pros and cons, so they must be considered carefully.
One of the most common options many will invest in is a state-sponsored 529 plan. This allows you to make monthly deposits over a period of time to set aside funds for your grandchild. Unfortunately, this plan is not very flexible, and you can easily trigger penalties.
Another option many consider is leaving funds for their grandchild’s education in their will. While this seems like a fairly standard option, it can pose issues. For example, if you place funds in the will, your grandchild will not be able to access them until you pass. As such, you may have to amend the terms of your will.
One option many invest in when paying for a grandchild’s education is to establish an irrevocable trust. This allows you to make up to five years’ worth of annual exclusion gifts of up to $15,000 annually. These funds are then used to make qualified transfers to the university or institution your grandchild will attend. As such, you can gift additional funds to your grandchild without worrying about incurring the gift tax. It’s also important to note that these plans are more flexible than a 529 plan, so your grandchild can use this money for other unexpected expenses, like medical bills.
How Can a Florida Estate Planning Attorney Assist Me?
As you can see, there are many options you can consider when planning for your grandchild’s education. Unfortunately, if you are unfamiliar with the estate planning process, you may not know which choice is right for you or how to proceed. As such, it’s in your best interest to enlist the help of an experienced estate planning attorney to help you make the best decision for your goals.
At the Law Offices of Matthew J. Jowanna, our dedicated legal team can help you explore all options to plan for your grandchild’s education. We understand how essential their academics are to you, so we will help you do everything possible to ensure they have the funds necessary to succeed. Contact our firm today to learn how we can assist you.
