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Creating education trusts can help loved ones significantly

For people in Ohio who are in the process of considering how best to establish trusts for their loved ones, an issue that has become prominent in today's world could provide a guideline as to how to move forward. Since education costs are skyrocketing and people are being overwhelmed by unmanageable and impossible to pay student-loan payments, a greater number of people who are seeking a strategy for their trust are turning to an education trust. Knowing how to do this and if it is a good idea is essential to the estate plan.

Those who have the assets to do it can derive benefit if they transfer assets from their estate into a nontaxable entity to help their loved ones defray or outright pay education costs with the trust. With an education trust, a loved one can be helped with paying for a college education, graduate school a trade school or other educational endeavors. Since college debt is an increasing problem for a large faction of society and many are debating whether it is worth it at all, people who have the means and the desire can help loved ones get an education without needing to fear for their financial future.

Of course, there are factors to consider and a lawyer can help to decide. For example, a 529 college savings plan might be a better alternative than an educational trust. The beneficiary of the trust might want to use the money for something other than the education - this must be considered and the parameters should be clear. Many people have several family members who would benefit from the educational trust and the division should be assessed. Some want to pay for the education of a person who is not a blood relative and this could be troublesome. The amount that will go into the education trust should be calculated. There are many different reasons and issues that will come up.

When deciding on how best to use assets for their optimal purpose, an education trust is an idea that is often not even considered. Knowing the ins and outs of the education trust is vital before moving forward with it. A lawyer who is skilled and experienced with estate planning and trusts can be of assistance in making an informed decision and putting the pieces in place to make it happen.

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I am attorney Dorothea J. Kingsbury. I provide good advice and real solutions to challenging problems. I can help you choose and personalize estate planning instruments that meet your family's present and future needs. I can develop elder law strategies that ensure proper care for your loved ones. I can guide you through the probate/estate administration process when a family member has passed away. I can help make sure your interests are protected during your real estate transaction. I am here to make things easier.

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