Figure this … investing in education really adds up
The cost of education continues to grow. It just makes sense to start saving today for your loved ones’ education. It’ll be here before you know it.
Education Savings Account
This savings account is specifically designed to provide a tax-free way to save for education expenses for any minor child until the age of 18 on a non-deductible basis.
Use the funds to pay for elementary and secondary education (K-12) expenses incurred in a public, private or religious school, as well as college, technical or postgraduate work.
Your earnings grow tax-free, and withdrawals for qualified education expenses are also tax-free (must meet income requirements).
Uniform Gifts to Minors
The Uniform Gifts to Minors Act (UGMA) allows assets such as securities, where the donor has given up all possession and control, to be held in the custodian’s name for the benefit of a minor without requiring an attorney to set up a special trust fund.
This allows a minor to have property set aside for the minor’s benefit and may achieve some tax benefit for the child’s parents. Once the child reaches the age of maturity (18 or 21 depending on the state), the assets become the property of the child and the child can use them for any purpose.