UTMA for Minors … or not?

UTMAThis time of year, with college about to begin in the Fall, many parents begin to think about their younger children’s higher education and how to save for it in preparation for their big day. Just what is an UTMA? And should you consider one for your minor child?

Many people are attracted to these because of taxes. However, going down that road is a double edged sword. What you might save in taxes, may cost you in financial aid … if the goal is to save money for college.

Talking with a qualified tax professional is suggested on this topic.

Please see my blog that put’s UTMA’s in perspective with other education funding options.

The article below may get your thinking started about what these may do, or not …

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http://clicktotweet.com/Lb4Fh

 

 

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One Response to UTMA for Minors … or not?

  1. Larry Frank, Sr. July 15, 2013 at 6:02 pm #

    1) You’ve done well and saved in a 529 plan for college … and then your student surprises you and gets a scholarship! How do you use the 529 money? http://www.kiplinger.com/article/college/T002-C001-S001-the-529-plan-scholarship-exception.html

    2) Your student decides to live off campus. How do you use the 529 money you’ve saved?
    http://www.kiplinger.com/article/college/T002-C001-S001-using-529-plan-funds-to-pay-rent.html

    More on college … http://blog.betterfinancialeducation.com/category/college/

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