Leaving a Lasting Legacy for Education | Estate Planning Tips From The TGQ Law Firm
Estate planning is a powerful legal tool to leave a legacy. However, people often overlook estate planning when thinking about safeguarding their legacy, especially when it comes to education.
In this blog, the team at The TGQ Law Firm in Ann Arbor will discuss how you can leverage estate planning for the purposes of leaving a lasting legacy for education — from paying for your grandchildren’s college tuition or establishing scholarships for underprivileged students to funding scientific research and the construction of new schools.
Strategies to Leave a Lasting Legacy for Education Through Estate Planning
When you pass on, you can build your estate plan to make education a focus for your children, grandchildren, and loved ones. Some strategies for leaving a lasting legacy for education include:
- Inheritance: You can set aside money from your estate to leave to children or grandchildren to go toward their education.
- Insurance: Your college-aged child may be able to access auto and health coverage through your insurance. Renters insurance is another coverage to consider. You may also buy life insurance to ensure that your child will have funds for education should you pass away.
- Guardianship: Naming a guardian to care for minor or special needs children after your death gives you more control over who will oversee your assets and can ensure that they go toward education.
Donating Money & Property in Your Estate Plan
The most direct way to leave a lasting legacy for education is to make cash or property donations to your children, grandchildren, or the wider community. These donations can go toward any project or purpose you’d like, such as:
- Paying tuition fees
- Creating scholarships
- Purchasing educational materials
- Building new schools
- Improving existing school facilities
- Funding research initiatives
- Supporting education charities
An experienced estate planning attorney can help you set up any donations properly and integrate them into your broader estate plan.
Establishing Scholarships for Future Generations
If you have a larger estate, you may consider setting up a scholarship fund. You would need to decide on the size of the awards, the fund’s purpose — whether it’s going to be related to a particular institution, community, or field of study — and who would be able to apply.
Depending on the answers, the structure of the fund may be different. For instance, larger funds often benefit from the creation of a charity or charitable trust, whereas smaller funds may be better off with a non-charitable trust. Be sure to consult with an estate planning lawyer to talk through your options.
Creating a Trust
A trust is a “container” in which you can put money and other assets for your chosen beneficiaries. This enables you to control the distribution of assets over time, including after you pass away, and designate them specifically toward educational causes.
Crucially, the ownership of the assets passes from you to the trust, which can help you avoid probate and certain fees and taxes. A trust can also safeguard your assets if there are changes in your family structure or other unforeseen events.
There are different types of trusts, so it’s essential to talk to an estate planning attorney to find the right one for you.
What Is the HEMS Standard in a Trust?
The Health, Education, Maintenance, and Support (HEMS) Standard enables the trustee responsible for managing a trust to make distribution decisions on the grounds of the health, education, maintenance, and support of the beneficiary.
The main purpose of including a HEMS Standard when creating a trust is to provide your children or other beneficiaries with the support they need until they can manage the funds themselves. An estate planning attorney can help you include a HEMS provision in your estate plan if you have significant savings or assets and minor or special needs children.
Schedule a Consultation | Ann Arbor Estate Planning Attorney | The TGQ Law Firm
Estate planning can be complicating but is essential for everyone. At The TGQ Law Firm, we take the stress out of estate planning. Our experienced estate planning lawyers can help you create a robust estate plan with provisos for leaving a lasting legacy for education.
To start the process, schedule a 15-minute no-cost consultation with an estate planning attorney in Ann Arbor, MI.
Disclaimer: This article is not intended to be legal advice. Everyone’s situation is different and legal advice is only properly given after having reviewed your specific situation.
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