With the rising cost of education, it is imperative that any parent who wishes to see his/her child(ren) reach the pinnacle of their dreams must consider a sure-proof plan that caters to their child’s education whether they are there or not.
Introducing the Education Trust
An Education Trust is a viable tool in securing your children’s education. When you create an Education Trust for your child (ren), you fund the trust and the child who is the beneficiary will receive the benefit of the trust.
How it works
When you create an Education Trust, you appoint a Trustee who oversees the trust to ensure that it is used for your child’s educational purposes. Through the trust instrument, you, the grantor, can direct the trustee (Who can be an individual or institution) to handle the funds in any manner you choose.
An Education Trust will typically specify that each of your children’s full tuition and university expenses be paid, after which any remaining funds in the trust can be distributed evenly to all your children.
Let’s create some scenarios to drive home the point:
Scenario 1:
The Trust may provide that when your child (beneficiary) turns 18, he/she will receive a certain amount of money yearly for educational purposes. The beneficiary will then be required to show proof to the Trustee at the end of each year that they have infact, utilized the fund for educational purposes.
Scenario 2:
The grantor (you) can set up the Trust such that the Trustee pays educational expenses directly to the grantor’s specified educational institution. In this case, your child may submit his or her tuition bill directly to the trustee and the trustee will pay the funds from the Trust.
How the trust should work will ultimately be decided by you and we’ll like to provide you with the right guidance on getting started with the Education Trust in order to protect your children’s educational future.
Get in touch with us via info@samtlng.com or call 01-2707352 and 01-2771292-6 for further details and professional advice.