Estate planning for parents often includes doing what is best for their child. When working on your estate plan in Ohio, you have to think about your children’s future. There is a lot to consider in regards to your child’s well-being. This includes inheritances, support for the future and education expenses. Education expenses are crucial and a key part of your child’s future.
Some may choose to add these expenses to a trust. A trust offers flexibility and an efficient transfer of wealth. There are several different options for funding your child’s future, but to include education expenses into the estate plan can be a great option.
According to Forbes, a trust may be better for education expenses. To leave money outright is not always smart. The child may use the money for something else. When you leave money in a trust, you can name a mature and responsible trustee to handle the money. You can direct the trust to pay for education expenses.
Trust documents are flexible. You can distribute money towards education for your child but that does not have to be the only purpose of the trust. You are able to account for the education expenses but also support or other expenses. If your child finishes his or her education and there are still assets in the trust, then the beneficiary can still access these funds. In addition, these funds will have protection against creditors or immature spending habits. When you transfer an asset into a trust, then you can save on estate taxes. This is an added benefit to using a trust for education expenses.