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What structure of educational trusts are tax deductible?
21Mar2008 Filed under: Careers & EmploymentQuestion:
What "structure", meaning what form of, EDUCATIONAL Trusts (irrevocable) are tax deductible? Charitable Remainder Trusts, are one option, but is there a specific "educational" trust with what specific language?
Answer:
A charitable remainder trust only gives you an income tax deduction for the estimated part of the trust fund that will go to charity. If you want you can contribute to a 529 plan–these currently are tax-deferred and allow withdrawals tax-free to pay for qualified education expenses. (Whether this treatment will continue will depend on congress as the legislation authorizing the tax-free withdrawals expires in 2011.)
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Washington Trust Bank - Why Your Choice of Trustee Matters ...
... financial difference to a charitable or educational ... The structure of a CRT is simple. You transfer assets ... or your estate can claim a federal estate-tax deduction if the trust ...Education
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