This article reprint was recently published in the Bloomberg BNA’s Estates, Gifts, and Trusts Journal.
- While daunting college tuition bills have always been a concern to many parents and grandparents, the coronavirus pandemic and the resulting economic crisis have only served to exacerbate those concerns.
- With financial resources strained and all eyes focused on how education must be reimagined in the future, now more than ever it will be important to evaluate different college funding alternatives, weighing the pros and cons of the various options, along with income and transfer tax consequences.
- Even wealthy families wish to pay for college most efficiently; the most effective plan often involves integrating a number of techniques with overall financial and estate planning.
With the coronavirus wreaking havoc on so many aspects of our lives, higher educational institutions have been deeply affected. The way these institutions operated was upended, and they are reeling to adapt. In March, most abruptly closed their doors and sent students home to finish semesters with on-line classes. It is against the backdrop of Covid-19’s impact on their financial resources that institutions will need to reinvent how campus life and learning will look when they reopen. Many universities depend on full tuition-paying international students, but whether they can continue to rely on that population, at least in the short term, remains unclear. Domestically as well, the financial fallout from the coronavirus has seen many close businesses, lose jobs, or suffer furloughs. Those families will have to determine whether tuition is still affordable.
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