Four years at a prestigious Ivy League college will leap to $766,000 in 2039! A good private college will jump to nearly $500,000 for four years by 2039. The hard estimates? Four years in a public college, in-state will jump from around $116,000 in 2022 to around $257,000 in 2039. Costs were about half that much twenty years ago and will be over twice that in 2039. Let’s start with a brief look at the daunting numbers.Īs of this writing, four years at a good private college costs over $200,000 for tuition alone. Let me also invite you to watch my webinar on educational gifting. If you plan to gift educational expenses to your loved ones, it’s essential to understand the education gift tax exclusion and how it can benefit you and your family. We know it’s some of the most important work we do, and we invite you to contact us. Here at CunninghamLegal, we work with families, parents, and grandparents as they make the financial, trust, and tax decisions that will permit the next generation to get the education they need and deserve. Most tap family-derived funds of one kind or another. Some people manage to get scholarships that help. We also know, firsthand, that higher education is super expensive and getting more expensive every year. ![]() We know that education is the great equalizer in our society and the gateway to opportunity. We know that educated citizens are better citizens. We know that the educated live longer, happier, better lives. All three got advanced degrees-and it’s an understatement to say my family values education. Later, my grandfather became a factory worker for General Motors in Detroit, but he managed to put his three sons through school on his blue-collar wages. He began his sophomore year in 1929, which of course is when the stock market crashed-and sure enough, he had to leave college to go back and work on the family farm. No one knew that better than my grandfather, who was born in 1909 and started college in 1928. When you gift educational expenses, you’re not only providing someone with the tools they need to succeed, but you’re also investing in their future. One of the best gifts you can give to people you love is the gift of education. How can you gift tuition and educational expenses to a child or grandchild? Should gift funds be direct payments to the educational institution? What funds should be gifted to the student? Are gifts for educational expenses tax-deductible? If so, what educational expenses can be excluded from gift tax? How does a gift affect financial aid? What are the advantages of a 529 plan? How can 529 plans be used to establish education trusts? How can Roth IRAs be used to fund education? How can life insurance be used to fund education? By James L. ![]() Special Needs Attorneys & Special Needs Trusts.Elder Law, Elder-Care, Medi-Cal Planning.CA Prop 13 Protection & Prop 19 Strategy. ![]() Real Estate Transactions & Dispute Resolution.Tax Planning, Estate Taxes, Charitable Trusts.
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