TELESEMINAR: Estate Planning for Education and Gifts to Minors – A National Perspective
May 14, 2013
12:00 – 1:00 p.m.
1.00 MCLE hours
There is a bewildering array of estate planning vehicles available to clients who want to provide for the educational expenses of children or others. They range from state-sponsored plans that are comparatively inflexible but tax-favored to private plans that are more flexible but might carry fewer financial incentives. The tax treatment of these vehicles – form statutorily-defined plans to various forms of trusts to custodial accounts – vary widely. There are also issues of control (how soon does a child or other beneficiary gain control of the funds, if ever?), the eligibility of beneficiaries, and what type of expenses may be covered. In each alternative, there are sophisticated tax, financial control and other tradeoffs. This program will provide you with a framework for understanding the range of alternatives and the practical financial, tax and control tradeoffs of each alternative.
- Detailed review of alternatives for funding the educational expenses of children or others
- How the “kiddie tax” impacts the use of various education funding plans
- State-sponsored v. Independent 529 Plans – tax and control tradeoffs of each
- Coverdell Education Savings Accounts (ESAs) – option for college and K-12 expenses
- Use of custodial accounts under UTMA and UGMA
- 2503(c) Trusts and the annual exclusion
- Crummey Trusts for multiple beneficiaries and children who are not minors
- Integration with larger estate plans
Blanche Lark Christerson, Deutsche Bank Private Wealth Management, New York