A Grandparents’ question

Posted by Nancy Hecht, CFP®, AIF®

Question: My husband and I are in our 70′s, retired and in good health. We have three grandchildren age 5 and under. We want to set up a trust for them which will hopefully help with their college tuition. Our plan is to contribute to it periodically as we are able. What would be the best way to set this trust up so the funds will grow – an investment account, money market account or savings account? Or is there something else we may not have considered?

Answer: I like to use the 529 College Savings accounts for this type of request. You can fund a 529 with a small amount and add as you wish. The account will be owned by one Grandparent with the other as the successor owner. This will allow for tax free withdrawals if the funds are used for qualified higher education costs. Another benefit is; if any of your Grandchildren want to apply for loans or grants, because you own the accounts, they do not have to be reported on financial statements. They are lucky Grandkids.

Click here for more information on Nancy. To set up a free consultation with Nancy, either call 407-869-9800 or complete this form.

Click here to view Nancy’s blog.

See our Disclosures.

Schedule A Virtual Meeting From Anywhere In The World