The Elder and Disability Law Firm, APC
Parents can plan for their children's future today
Parents in California may have an interest in establishing a legacy for themselves long after they depart this world. One way to do that is to ensure that their children have the money needed for a quality education. This goal may be accomplished by using a trust or by investing in a 529 plan. Before creating a trust, it is important for a parent to know what his or her money is intended to accomplish.
For instance, some parents may simply want to leave equal amounts for all of their children. In such a scenario, it may be best to create a separate trust for each child that only he or she can access. One downside is that a child may not use all the money in the trust or need more than is provided. Alternatively, parents may also simply want to create a general fund that each child can use as needed. This can be ideal for parents of children who have varying educational interests.
Using a pots trust may also result in younger children not having as much money for college as that child's older siblings. While parents won't have as much control over how money in a 529 plan is used, it may be better tailored to a student's needs after high school.
Providing for a child's educational needs may be a necessary part of the estate planning process. An attorney may be able to help a parent figure out the best way to leave money for a child. While a trust is a common tool used to provide for future educational expenses, other options may be available as well. Those who have already created a trust may benefit from reviewing it with an attorney on a regular basis.