Helping your children prepare for college is a worthwhile investment.
You want your children to succeed.
To do this, they need an education or training in a particular field.
Not all fields require a college degree.
When they do though, it can be expensive.
According to a recent Green Bay Press Gazette article titled “Benefits of 529 college savings plans keep giving,” a 529 plan can be a great option to save for this investment in education.
The contributions you make to this plan can help you save more money.
The money can grow tax-deferred, unlike many other options.
You can also choose your own investments.
You could also utilize a plan where investments are changed based on the age of your child and how near he or she is to college.
When the funds are used for qualified educational expenses, they are tax free.
States with this program may have unique rules.
For example, Wisconsin allows students to use the funds in other states and possibly at colleges abroad.
Wisconsin also allows funds to be used for K-12 education.
Grandparents can create a plan on behalf of their grandchildren.
These funds could be transferred to another grandchild should the original recipient not need the money due to scholarships or a change in life trajectory.
Using a 529 plan in your estate planning can help you set your family members up for success.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Green Bay Press Gazette (July 13, 2018) “Benefits of 529 college savings plans keep giving”