One of my students just lost his dad in an accident. I'd like to set up some sort of TRUST FUND for him. His mom is a low-wage worker. He's only 6 years old. Can anyone tell me where to find information to create such a fund? I imagine it can be quite complex. Any better suggestions to support the child and his mom? Thanks very much!
2006-11-26 05:35:36 · 5 answers · asked by Lost without a map! 1 in Business & Finance ➔ Careers & Employment
How nice of you to want to do this! Very thoughtful, and I'm sure will be much appreciated. Choose a bank...go in and tell them what you wish to do...they will guide you thru the entire process. It's not really complex...and the time and effort that it takes is so worth it. Godspeed
2006-11-26 05:38:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
As a grantor of the trust for a minor, you want to speak to your attorney about setting up the trust in your state. There are two things that you can do to insure dollars are set-aside for the student. You can set up an Educational IRA for the child and that requires a call to the broker. You can only save minimum amount wach year or lump sum of $250,000.
Another way is to set-up a support trust and move as much as possible into a irreversible trust called an Defective Income Trust, Stocks, Real Estate, Bonds,etc. You as the grantor can receive income from it while you are alive and you will be able to pay taxes on only the money received. Any growth is tax excluded unless you receive it. On your death, the child would receive the money "possibly tax-free).
Lots of other options: Support Trust- Setting up an endowment at the school they will attend and making gifts diretly for the child..
See an attorney and explore before you leap.
2006-11-26 05:45:05 · answer #2 · answered by Sports Maven 1 · 0⤊ 0⤋
Have you ever heard of Upromise.com? It is a way to have a percentage of every credit card purchase you make go to a college fund. I am using it to save for my grandson's college expenses. You could also go to a local bank and see if they can help you.
2006-11-26 05:40:02 · answer #3 · answered by notyou311 7 · 0⤊ 0⤋
You may want to contact a financial advisor. Usually you could go to the bank or go online to a place like www.vanguard.com and call one of their reps.
2006-11-26 05:54:39 · answer #4 · answered by veeD 1 · 0⤊ 0⤋
Check this website, it has information that you can use..good luck>>
http://www.ricedelman.com/planning/investing/trusts.asp
2006-11-26 05:43:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋