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#1
08-25-2006, 07:02 AM
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 Re: Funding Child's College Education Pete wrote: - quote - > > Is there some way for the contributions to be deductible from income,
of income, so if the trust has income, the distribution (via K-1) gets> > either by the trust or by the child's father (one of the trustees)? > > > Am I correct in thinking that -- in view of the short time horizon -- there > > is little value in setting up a 529 Plan or other tax shelter for the > > *earnings* of the contribution. Occurred to me that a distribution from the trust can be a distribution recognized as the kid's income. If you plan to assist El Kiddo with a Masters degree, you might want to set up a 529. Who knows ... if you get a nice gain it might help out in the last year of Bachelor's degree? (I have no idea about this, but check to see if the 529 can be set up for your kid's kids.) |
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08-20-2006, 10:42 AM
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| Re: Funding Child's College Education Pete wrote: - quote - > We have a family trust that wants to contribute $5K towards the college
"deductible" = a tax question?> education of one of the trustee's children. The child is 19, and has > already started college. > Is there some way for the contributions to be deductible from income, > either by the trust or by the child's father (one of the trustees)? > Am I correct in thinking that -- in view of the short time horizon -- there > is little value in setting up a 529 Plan or other tax shelter for the > *earnings* of the contribution. > Any ideas on what you would do in these circumstances? The tuition and fees deduction was a good deal that might have helped here, but hasn't been extended beyond 2005 yet. Correct on the Qualified Tuition Plan (aka 529). What would I do? Help the kid through college if you have the means...but make sure the kid also has a big stake in his/her own education, by having them sign a few loan documents.... -Mark Bole |
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#-1
08-19-2006, 07:58 PM
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| Funding Child's College Education We have a family trust that wants to contribute $5K towards the college education of one of the trustee's children. The child is 19, and has already started college. Is there some way for the contributions to be deductible from income, either by the trust or by the child's father (one of the trustees)? Am I correct in thinking that -- in view of the short time horizon -- there is little value in setting up a 529 Plan or other tax shelter for the *earnings* of the contribution. Any ideas on what you would do in these circumstances? Thanks Pete |
| Tags |
| child, college, education, funding |
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