Hutcheson notes that for those who can afford to make a relatively large gift to a minor to pay for college, the UTMA account permits the donor and custodian to give up to $10,000 per year ($20,000 for a married couple that chooses to split gifts) to each child as a tax-free gift.
The “tax advantage” might not be so advantageous; if the same funds were invested in growth equities, the only thing that would be taxed as ordinary income would be the dividends (which would be taxed at the parents’ rates). Tax on capital appreciation would be deferred until the equities are sold, at which time they [...]
In a February 2001 interview, Rand Hutcheson, a lawyer in the Estate Planning Group at Rackemann, Sawyer, and Brewster, a Boston law firm, noted that, in general, you can pay a child’s or grandchild’s tuition free of any gift tax if you pay it directly to the educational institution involved. This type of financial planning, [...]
With college costs prohibitively high for many families, financial aid is often the help that makes it possible for the student to attend school. Financial aid is defined loosely as the dollars and cents of support colleges make available to students who have received an offer of acceptance. Jeffrey M. Sherman, a private investment manager [...]
As a camera recorder at one of local Television broadcasts in my city, my job is recording all of news that happen in my city. Some people think this job is easy but is not true because I’m always ready to go to 5 or 8 different places a day. It is a busy job, [...]
The federal tax on a prepaid tuition plan, as well as the income generated through plan investments, is deferrable until the funds are used to pay for college. At that point the money is taxed at the student’s then-current tax rate, which is extremely beneficial because the student’s tax rate is typically the lowest tax [...]
There are two forms of college savings programs offered in many states: prepaid tuition plans and savings plan trusts. According to Miles A. Rubin, a vice president of investments at Paine Webber in New York City, most prepaid tuition plans allow participants to begin paying college tuition costs when the future student is still an [...]
A consumer’s movement has emerged in the higher education area, challenging colleges to examine their educational missions and philosophies, as well as their balance sheets. In most cases, we, as parents, are making a major financial “investment” when sending a child off to college.