Colorado Estate Planning for Family Education

Summary:  Using your money to pay for educational costs for your family members may be the best use of your money.  You can use a testamentary trust in your will or revocable living trust.  You can also provide the assistance through life-time gifts.

Education After High School is Increasingly Important and Expensive

Getting an education after graduation from high school is increasingly important.  Working a job which does not require an education is becoming a higher risk as time goes on.

Those without an education have a higher risk of much lower earnings.  A higher risk of eventually being fired in favor of a lower wage employee.  A higher risk of being unemployed and on family and public assistance.

The less educated earn less.  Character issues are too often a part of their lives.  Character issues are a part of the lives of the people that they associate with, particularly similarly-situated employees with little or no education.

The cost of getting an education in Colorado has been increasing at double-digit rates.  This includes both trade school and college educations.  Borrowing is becoming increasingly expensive and difficult.

An Education Includes Personal Development Seminars, Books, etc.

All of us compete with others in the service industry, either an employee or a small business owner.

In addition to college degrees and other classroom certificates, other educational opportunities which develop the every-day skills are also very important.  Some people argue that these skills are more important than a formal education.

Such as Toastmasters, Dale Carnegie courses, time-management seminars, financial planning classes, computer upgrade skills, and participation in civic groups.  Participants learn basic skills such as communication skills, financial literacy, family relationships, and similar life skills.

You Should Help With the Financial Cost of Getting an Education

Probably the best use of your money is to invest in education for your family members.  Your money may be the only financial assistance that some of your family members may have.

This is especially true for your grandchildren and great-grandchildren.  The best use of your money is likely for the family assistance with educational and personal development skills. 

You should provide educational assistance during your lifetime as well as in your estate plan.

Your Estate Plan Should Include Financial Assistance With Educational Costs

Your will or trust estate plan should include provisions for financial assistance with educational costs for your family members.

Giving a portion of your estate to family members who will not use it for education, with the hope that the recipients will use the money to educate other family members is a mistake.  Your money will never be used for educational purposes.

A testamentary trust which is established in your will or in your revocable living trust to provide for educational assistance will leave a legacy which is most appreciated and useful.

Don't rely on other family members to use an inheritance to educate other family members.  It seldom happens.

You Should Also Help With Gifts During Your Lifetime

Your will or trust is not the only place for your educational gift planning.

Provide encouragement and financial assistance during your lifetime.  Assist your family members by starting a savings plan.  Pay for their tuition, books, and living expenses.  Help them obtain any needed financial assistance.