PLEASE NOTE: To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us via telephone or through video conferencing. We are also doing both office visits and in home meetings as requested. For in person meetings, we will be observing recommended protocols to ensure your safety and that of our staff. For further assistance, please call our office.

ALBANESE LAW, LLC MASSACHUSETTS ESTATE PLANNING ATTORNEY

Call to schedule an appointment or house call

How do I create an educational trust?

On Behalf of | Jul 31, 2022 | Trusts

As a caring parent or grandparent, you want to leave assets behind for your loved ones. Some of these heirs may include those who are in their twenties or even younger.

Young people are not always wise at handling money. You want to make sure they do not waste what you worked so hard to save.

Trusts are an excellent way to control your assets

If you want to control the assets that you leave behind, then putting those funds in a trust is an excellent option. If you have children or grandchildren who are underage, consider an educational trust.

An educational trust is beneficial

Tuition costs keep going up, according to the National Center for Education Statistics. Tuition increased by 13 percent at public colleges and 18 percent at private institutions. Creating an educational trust ensures your children or grandchildren get a college education.

With an educational trust, you specify that the funds you leave behind are for educational costs. When creating such a trust, you decide who is in control of the funds and who are the beneficiaries. You can also specify what type of education the fund will pay for.

If you have more than one beneficiary

You may want to have more than one beneficiary. You can either set up a trust for each one or include all beneficiaries in one trust. You can either leave the money in a pot and give the trustee flexibility on who gets what. Or you can give each beneficiary a set percentage. No matter what you decide, you should be specific in the trust document.

Archives

FindLaw Network