This article reprint was recently published in the Bloomberg BNA’s Estates, Gifts, and Trusts Journal

  • Simple annual exclusion gifting can be a very valuable source of funding. Leveraging annual exclusion gifting with trust structures can potentially enhance the benefits.
  • Utilizing the 2018 $11.18 million gift tax exemption has the potential to powerfully impact the educational funding front.
  • Educational funding techniques that do not have a gift tax consequence may hold the ultimate appeal.

Daunting college tuition bills are a concern to many parents and grandparents. In evaluating different college funding alternatives, the pros and cons of the various options should each be considered, along with income and gift tax consequences. Another important consideration is the effect of different funding techniques on the ability of a student to qualify for financial aid. The most efficient plan often involves integrating a number of techniques with overall financial and estate planning.

Please see important disclosures at the end of the article.

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