There are many different ways to fund a college education and a trust is one of them.
If a family should decide they do not want the younger generations to be be heavy in debt upon graduating from college, there are a couple of different options, according to the Wills, Trusts & Estates Prof Blog in “Funding Education? Consider A Trust Instead of a 529 Plan.”
A 529 plan is a great way for families to save for education.
It allows for tax-free investments for educational expenses. However, the investment opportunities can be somewhat limited and people can only sign up for plans that are made available from state governments.
People with more money would be better off using trusts for educational expenses.
With trusts, there are more investment options and, if the money is not needed for educational expenses, then it can more easily be used for other purposes.
An estate planning attorney can advise you on creating an estate plan that fits your particular circumstances and may include funding education for future generations.
Reference: Wills, Trusts & Estates Prof Blog (Nov. 16, 2017) “Funding Education? Consider A Trust Instead of a 529 Plan.”