College Planning: Considering Your Estate
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Trusts can be an essential part of college planning, as it is vital to consider college costs in the context of your overall finances, including your estate and wealth transfer plans.


Considering Your Estate

Trusts can be an essential part of college planning, as it is vital to consider college costs in the context of your overall finances, including your estate and wealth transfer plans.

Section 2503(c) trusts

These trusts are created to give the trustee control over the money until the beneficiary turns 21, enabling the parent or grandparent to ensure that the money is used for education rather than other purposes.

529 plans within a trust

Many 529 plans allow for a contingent owner to take over in case the owner becomes unable to manage the plan. Naming a trust as the contingent owner may work for grandparents who want the peace of mind of knowing their wishes will be carried out by the trustee of their trust. However, 529 plans can only have one beneficiary at a time, so special care should be taken if a trust has multiple beneficiaries.

Estate tax considerations

Funding your next generations' educations through a Health and Education Exclusion Trust (HEET) may provide exclusions to your estate's taxable assets. Ask your Wealth Advisor if this strategy is right for your estate plan.

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This information is general in nature and is provided for educational purposes only. Regions makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented. Information provided should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. Regions encourages you to consult a professional for advice applicable to your specific situation.