Taking advantage of a college savings plan can be a great way to help your child reach his or her educational goals.  If you’re a South Carolina resident, you may be looking for the best savings options.  Take a look at some of the information below to learn more about possible college savings plans. If you need help deciding on your college savings plan choices, meet with an estate planning attorney.

This is blog post will discuss the Future Scholar 529 College Savings Plan.  Unlike the previously discussed Tuition Prepayment Plan, this plan is currently open for new enrollment.

What is the Future Scholar 529 College Savings Plan?

This plan was established in 2002 to help families better prepare for the future costs of college.  To get started with the plan, you must make a minimum initial contribution of $250.  You will also be required to make a $50 minimum contribution each month.

This plan allows families to save for the costs of college until the account reaches a maximum total of $318,000.

There are different investment options to consider when utilizing this college savings plan.  You’re able to take advantage of this opportunity with or without the help of a financial advisor.

What are the benefits of the Scholar 529 College Savings Plan?

This plan allows you to invest only a small amount of money at a time, so that you’re able to always invest, no matter your financial situation.

You will also be able to take advantage of tax benefits.  All of the earnings will grow federally tax-free.  You will also be free from federal taxes when making education expense withdrawals.  You’re also able to deduct contributions from your state tax return.

If you have any questions about how to go about saving for college or if you need help enrolling in a college savings plan, consult with a qualified estate planning attorney.

Kuhn & Kuhn Law Firm is a member of the American Academy of Estate Planning Attorneys.

Many South Carolina residents decide to invest in a college savings plan in order to help fund their child’s future college expenses.  The state of South Carolina offers different plans to make the savings process easier on you.  If you’re thinking about taking advantage of a college savings plan, take a look at the information below to learn more.  If you have any questions about choosing the best college savings plan for your individual needs, meet with an estate planning attorney.

This blog post is part of at two part blog article discussing South Carolina savings plan options.  This post will take a close look at the South Carolina Tuition Prepayment Program.

What is the South Carolina Tuition Prepayment Plan?

This is a plan that was created in 1998 to help South Carolina residents pay for the costs of college.  This plan is currently not open for new enrollment until the state chooses to accept new participants.

It’s a good idea to keep an eye on this plan so that you’re able to take advantage of its benefits when new enrollment is accepted.

This plan allows individuals to prepay for a college education of their choosing.  This includes choosing between a 2 year degree or 4 year degree program.

This program also offers different payment plans to make it easier to save.

What are the benefits of the South Carolina Tuition Prepayment Plan?

One main benefit is the fact that you’re investing in an actual college tuition and are able to choose the best plan that fits your child’s needs.

There are also tax benefits.  You’re able to take advantage of state tax deductions based on the contributions that you make each year.  Your earnings are also free from federal taxes.

This program makes it possible to save for college costs easily.  You should keep an eye on this program to take advantage of enrollment, when possible.

If you have any questions about your South Carolina college savings plan options, consult with a qualified estate planning attorney.

Kuhn & Kuhn Law Firm is a member of the American Academy of Estate Planning Attorneys.

The “I love you” will is NOT a good way to leave assets to your spouse.  An “I love you” will is as simple will that provides all assets to go directly to the spouse.  If the spouse is not then living, the assets go to the children.

Why you shouldn’t leave your assets to your spouse:

• Outright assets often never reach children.  Children are often unintentionally disinherited  by their parent and intentionally disinherited by a step-parent.  Instead, pass the assets to your surviving spouse in a trust.

• Outright assets have no asset protection.  They can be taken by your spouse’s creditors  or predators.  In other words, the assets can be seized in a subsequent divorce, bankruptcy or other creditor action such as a malpractice suit, car accident, slip and fall, or business failure.  Predators are charities, ministers, financial advisors, and others who prey on widows (and widowers.)

• Windfall assets are typically gone in 18 months.  When a spendthrift beneficiary, spouse or otherwise, suddenly inherits a windfall, the assets are spent and there is nothing left to support the spouse or to be inherited by the children.

• An outright inheritance may disqualify a special needs spouse from receiving governmental assistance.  For instance, if your spouse is receiving Medicaid payments to pay for nursing home care, an outright inheritance will disqualify her.  On the other hand, if the inheritance is in trust with special needs provisions, your assets can be used to make her life better, supplementing, not supplanting what the government pays for.  Thus, your hard earned assets aren’t wasted.

• Outright inheritances to a spouse do not use your lifetime exemption and may lead to great tax liability.  (We’re ignoring portability at the moment due to its limited applicable time frame, vagueness, newness, and requirements.)

Pass your assets in a trust to avoid all 5 of these outright inheritance issues.  Your spouse can be the beneficiary of your trust and use the assets for her needs, health, education, and maintenance.

Kuhn & Kuhn Law Firm is a member of the American Academy of Estate Planning Attorneys.