From our “Ask a Question” Mailbag: Education Trusts – Planning for the Future

Most Recently Updated July 18, 2018.

“I created a Revocable Living Trust to avoid probate with the Philadelphia Register of Wills, but I have decided that I would like to form a trust that would pay for my nieces college education. Can I do this using my Revocable Living Trust?”

Education Trusts – Planning for the Future

Education Trusts – Planning for the Future

You can certainly form an Education Trust within the terms of your existing Revocable Living Trust. A Living Trust is divided into two main parts; the terms that apply when you are alive and the terms that apply after your death.

What I can do is draft an amendment to your existing Revocable Living Trust adding the Education Trust into the “what happens after your death” portion. We can discuss the terms, but they can be very broad or narrow. For example, you could say that the funds can only be used for tuition payments or you can allow them to be used for books and housing. You could put a ceiling on the amount of money used on each niece, or you could let your trusteehave the discretion to use the funds differently for each niece in any amount.

I would be happy to brainstorm options with you so that your Education Trust will reflect your wishes.

More Planning Questions?

The education trust is only a piece of the Estate Planning process. By all means, if you want to learn more, please read my more detailed article, Estate Planning Everything You Need to Know.

In Conclusion: Education Trusts

I hope that this article was helpful in explaining an education trust. Further, I included links to even more detailed information on my website so you can learn more. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!

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