Thursday, November 16, 2017
529 plans are generally excellent savings vehicles for funding a child’s education. Among a number of attractive features are tax-free asset growth, clear investment options, and flexibility. While these plans work well for the vast majority of parents, those with substantial estates may find it more advantageous to use a trust. Trusts generally have a broader choice of investments, may be drafted to accommodate expenses other than education, and can offer asset protection from creditors and foolish spending habits. Implementing a trust strategy is complex and requires experienced counsel.
See Rob Clarfeld, Funding Education? Consider A Trust Instead of A 529 Plan, Forbes, August 22, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.