What Happens If They Do Not Go To College?
Bel Air, MD (PRWEB) April 01, 2014
Eastern Point Trust Company, the leader in online Education Trust creation and administration announced that its Kiss Trust product now solves the unused 529 penalty dilemma.
For parents, there is no guarantee what the future holds for their children. When creating an education savings plan for a child you should also consider that the outcome you hoped for is not always certain. An inflexible education savings plan like a 529 or UTMA can cause the wasteful use of money and, in some cases, outright harm to the child through unmanaged distributions.
“Kiss Trust’s Education Trust option is designed to ensure that unused education funds are not locked up in a 529 subject to tax penalties.” says Floyd Simeon, Chairman.
The facts:· According to the National Center for Education Statistics only 1/3 of high school seniors ever enroll in college.
· U.S. News and World Reports surveys point out that 30% of college students drop out of college in the first year.
· US Department for Education statics indicate that ½ of college enrolled students never graduate.
In summary, less that 17% of high school seniors graduate from college and these statistics have remained stable for the last 3 decades.
So, what happens to the money you saved if your child does not go to college?· Will it be trapped in a 529?
· Do you run the risk of the IRS penalizing you for an unused 529?
· If the 529 is in the name of the child, will the child simply cash in the 529 and use the money wastefully?
Kiss Trust is designed to solve the problem of a child not attending or completing college by allowing you to design:
· How to distribute the money upon the child enrolling in college or vocational school
· How the trust should accommodate the child delaying attendance of college or vocational school but pursues higher education later.
· Whether to allow off campus living expenses.
· What occurs if the child does not enroll in college or vocational school.
· How unused post-education funds may be used.
· In what manner will the assets be used in the event the child passes away, becomes disabled or develops a serious medical condition.
· Education Bonuses for good performance and timely completion of education.
· Penalties for the failure to graduate.
The money saved in a Kiss Trust can be used penalty free for other distributions like:
· First time home purchase,
· Age specific distributions,
· Critical illness, and
· 500,000 other design combinations.
With Kiss Trust if the child decides to attend college later in life the benefit will be there for them.
Whether children go to college or not with a Kiss Trust you have the peace of mind knowing how the money will be used.
Kiss Trust is available in all 50 states as a quick, easy and low cost trust solution. In 2012, 2013 and 2014 Americans created more online irrevocable trusts through Kiss Trust than any other source.
About Kiss Trust
Kiss Trust is a service of Eastern Point Trust Company and is the nation’s exclusive provider of online savings trust document services and trust administration services. Eastern Point Trust Company was founded and is staffed by top talents in law, trusts and technology to make the benefits and protections of trusts accessible and affordable to everyone. Eastern Point Trust Company is not a law firm. Eastern Point Trust Company is a non-depository trust company with multiple regional offices. Eastern Point Trust Company provides fiduciary and trust administration services for clients located in all 50 U.S. states, the U.S. Territories, across North America, South America, the Caribbean, Europe and Asia. Reported by PRWeb 3 hours ago.
Bel Air, MD (PRWEB) April 01, 2014
Eastern Point Trust Company, the leader in online Education Trust creation and administration announced that its Kiss Trust product now solves the unused 529 penalty dilemma.
For parents, there is no guarantee what the future holds for their children. When creating an education savings plan for a child you should also consider that the outcome you hoped for is not always certain. An inflexible education savings plan like a 529 or UTMA can cause the wasteful use of money and, in some cases, outright harm to the child through unmanaged distributions.
“Kiss Trust’s Education Trust option is designed to ensure that unused education funds are not locked up in a 529 subject to tax penalties.” says Floyd Simeon, Chairman.
The facts:· According to the National Center for Education Statistics only 1/3 of high school seniors ever enroll in college.
· U.S. News and World Reports surveys point out that 30% of college students drop out of college in the first year.
· US Department for Education statics indicate that ½ of college enrolled students never graduate.
In summary, less that 17% of high school seniors graduate from college and these statistics have remained stable for the last 3 decades.
So, what happens to the money you saved if your child does not go to college?· Will it be trapped in a 529?
· Do you run the risk of the IRS penalizing you for an unused 529?
· If the 529 is in the name of the child, will the child simply cash in the 529 and use the money wastefully?
Kiss Trust is designed to solve the problem of a child not attending or completing college by allowing you to design:
· How to distribute the money upon the child enrolling in college or vocational school
· How the trust should accommodate the child delaying attendance of college or vocational school but pursues higher education later.
· Whether to allow off campus living expenses.
· What occurs if the child does not enroll in college or vocational school.
· How unused post-education funds may be used.
· In what manner will the assets be used in the event the child passes away, becomes disabled or develops a serious medical condition.
· Education Bonuses for good performance and timely completion of education.
· Penalties for the failure to graduate.
The money saved in a Kiss Trust can be used penalty free for other distributions like:
· First time home purchase,
· Age specific distributions,
· Critical illness, and
· 500,000 other design combinations.
With Kiss Trust if the child decides to attend college later in life the benefit will be there for them.
Whether children go to college or not with a Kiss Trust you have the peace of mind knowing how the money will be used.
Kiss Trust is available in all 50 states as a quick, easy and low cost trust solution. In 2012, 2013 and 2014 Americans created more online irrevocable trusts through Kiss Trust than any other source.
About Kiss Trust
Kiss Trust is a service of Eastern Point Trust Company and is the nation’s exclusive provider of online savings trust document services and trust administration services. Eastern Point Trust Company was founded and is staffed by top talents in law, trusts and technology to make the benefits and protections of trusts accessible and affordable to everyone. Eastern Point Trust Company is not a law firm. Eastern Point Trust Company is a non-depository trust company with multiple regional offices. Eastern Point Trust Company provides fiduciary and trust administration services for clients located in all 50 U.S. states, the U.S. Territories, across North America, South America, the Caribbean, Europe and Asia. Reported by PRWeb 3 hours ago.