By Bidemi Omoyele
Education has always been important to me, so when I found out I was pregnant, I immediately created an Education Trust – a fund for my unborn daughter so that she can attend the best colleges in the world and get the best education possible!
Here, I will simplify what an Education Trust is and how you as a Parent or an expectant parent can benefit from it.
What is an Education Trust?
An Education Trust is a legal entity that is created to provide financial support for educational expenses. The trust is funded by contributions from individuals, businesses, or organizations, and the funds are managed by a trustee. The beneficiary of the trust is typically a student but can also be a school or an educational institution.
The purpose of an Education Trust is to provide financial assistance for educational expenses, which can include tuition, hostel accommodation, books, and other related expenses. The trust can also be used to support students who are enrolled in private schools, as well as those who are pursuing higher education.
One of the advantages of an Education Trust is that it can be used to cover a wide range of educational expenses. In addition, the funds in the trust can be invested, which can provide a source of funding for future generations of students.
If you are interested in creating an Education Trust for the future of our children, there are a few things to keep in mind. First, you must identify a trustee who will manage the fund. Second, you should determine how the trust will be funded. And finally, you must be clear on the beneficiaries of the trust.
The Benefits of an Education Trust
There are many benefits to setting up an education trust for your children. Perhaps the most obvious benefit is that it can help provide financial security for their future educational needs. But there are other benefits as well.
An education trust can also help to ensure that your children get the best possible education. Through the trust, you can specify which schools you would like them to attend, or even which specific courses or programs you would like them to take. This can be a great way to make sure that they get the most out of their education and are prepared for the future.
Another benefit of an education trust is that it can help your children to develop good financial habits. If you set up the trust so that they must use it for educational expenses, they will learn early on in life how to budget and save for their future needs. This can be a valuable skill that will serve them well throughout their lives.
If you are considering setting up an education trust for your children, there are many resources available to help you get started. You can speak with a financial advisor about the best way to set up the trust, and there are also many online resources that can provide helpful information.
How to set up an Education Trust
By setting up an Education Trust, you can specify how the money in the trust will be used and when it can be accessed. This gives you complete control over how your children’s education is funded and ensures that the money will be there when they need it.
Setting up an Education Trust is not difficult, but there are a few things you need to know before you get started.
- Decide what type of Education Trust you want to set up
There are two main types of Education Trusts – irrevocable and revocable. An irrevocable trust cannot be changed or canceled once it has been created, while a revocable trust can be modified or revoked at any time. Choose the type of trust that best meets your needs.
- Choose a trustee for your Education Trust
The trustee is the person who will manage the trust and make sure that the money is used according to your wishes. You can name yourself as the trustee, but you may want to choose an expert or a Trust Advisor like ARM Trustees who have been helping me to manage my children’s Education Trust
Having an Education Trust is one of the greatest things you can do for your children, and they always appreciate it even if you are not longer in the picture physically.