How to Pay for the (Grand) Children’s Education After Divorce?

It was lovely seeing many of you at the holiday reception. Wilmington Trust was honored to be part of such a special event that allowed us to get to know many of the Fellows better and talk about how we can support each other as we help our clients navigate the challenges and complexities of divorce.

As a follow-up, I want to make sure you were aware that our firm offers an array of divorce advisory solutions that you might find to be helpful resources. I invite you to visit our dedicated divorce solutions resource page at your convenience and to reach out to me directly to discuss how we might collaborate to support your clients in transition.

For those of you who didn’t attend and for those of you who haven’t had a chance to read my article, I have posted a link below.  As you review with your clients who will pay for the children’s education after divorce, and how to do so most efficiently, you may find helpful my article: Paying for the (Grand) Child’s Education: Making Educated Choices.

The article was recently published in Bloomberg BNA’s Estate, Gifts and Trust Journal. It includes a comprehensive review of planning strategies to pay for educational expenses, including trust planning from the simple to the complex, tax-advantaged ways to give, and funding options with no gift tax consequence. It also includes innovative planning tips to utilize when implementing any strategy.

With regard to each technique, the article examines:

•     Advantages;

•     Disadvantages;

•     Income tax consequences;

•     Gift tax consequences;

•     Estate tax consequences;

•     Generation-skipping transfer tax consequences; and

•     Impact on eligibility for financial aid.

Happy Holidays and a Happy New Year!

Sharon Klein

President, Family Wealth, Eastern Region

Wilmington Trust, N.A

To ensure compliance with requirements imposed by the IRS, we inform you that, while this presentation is not intended to provide tax advice, in the event that any information contained in this presentation is construed to be tax advice, the information was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax related penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any matters addressed herein.

This article is for educational purposes only and is not intended as an offer or solicitation for the sale of any financial product or service or as a determination that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on their objectives, financial situations, and particular needs. This article is not designed or intended to provide financial, tax, legal, accounting, or other professional advice since such advice always requires consideration of individual circumstances. If professional advice is needed, the services of a professional advisor should be sought.