What Is the Best Way to Fund College Education for My Kids, Grandkids?
The most efficient college savings plan
for most parents and grandparents is a 529 plan. There are also irrevocable trusts that can be useful as vehicles into which parents and grandparents can
make gifts annually without any gift tax consequence and that can be designed to
provide for private high school educations, for example, as well as
college. So we would like the opportunity to explore with you what your goals are
and the amount of funds that you would like to begin to make available and the
conditions on how those funds would ultimately be used for the benefit of
children and grandchildren. But the 529 plan is something I recommend most people
take a look at. The funds grow income tax free inside a 529 plan, and if they’re
distributed to a qualifying higher educational institution to pay for
college they come out tax-free. That’s a pretty good deal for helping educate
your children and grandchildren.