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Financial Planning / Paying For College


Subject:  Re: Saving for a needy family Date:  12/5/2000  9:22 PM
Author:  WorkingMomOfTwo Number:  3175 of 8580

Jacki said:
I'm sure there are others who will chime in and know more but my best take is keep the money in your name and then pay the college bills directly, when the time comes.

My opinion:
I agree because this way (1) they have no tax liability
or income to report, (2) you retain control and can
ensure the money is spent for college instead of current needs, (3) it does not count toward/against financial aid, and (4) direct payments to college from
anyone are not subject to the $10000 yearly gift limit.

The only thing Jacki missed is that YOU need to decide
what you want done with the money should something happen to you. I do not think you want to list the
family or child as a direct beneficiary to the account
and would suggest a trust that is setup in your will with your specifications detailed. The other snag is whether any of your less generious beneficiaries will contest these arrangements. This may be tricky water to tread...find a lawyer!
cbenYou maym ehta way to ensure the money ishte monensuUyto My only
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