It is almost time to start thinking about what your children will need for school. It is also the perfect time to make sure that your children are protected – and that they will have the funds they need for the education you want them to have.
Name That Guardian
Children change significantly from year to year, as do their needs for care. Is the guardian you named when you created your estate plan still the best guardian for your kids? A few elements to consider:
- Is the guardian you chose for your children in the event that something happens to you still the person you would want to fill that role?
- Is that person still available and prepared to act as a guardian?
- Would your children be happy with your choice?
Update Your Estate Plan
Celebrated events, from graduation to the long-awaited birth or adoption of a new family member, mean change. As your children grow and mature, so should your estate plan. If you used intent letters to provide extra direction, those documents may need to be updated.
Plan To Fund Education
There are a number of strategies we can use to make it easier for you to pay for your children’s or grandchildren’s education. These include:
- Avoiding the gift tax by paying tuition directly to the educational institution
- Maximizing the changes to 529 plans: tuition for kindergarten through twelfth grade may be a qualified expense
- Exploring revocable educational trusts
- Establishing a health and education exclusion trust, which may be particularly appealing to grandparents
- Encouraging prospective students to find scholarships early
Back-to-school is the perfect time to ensure your children are protected and to make it as easy as possible to pay for their education. If you have any questions or would like to set up an appointment, please contact us at (703) 448-7575.