“You want what’s best for your children. That includes helping to ensure that they’re admitted into the best colleges. But the college admissions environment has changed,” John Hancock Investment Advisors offers in Financial Advisor Magazine. How?
- Students are applying in record numbers, with a more than 20% increase compared with just two years ago.
- Colleges are receiving interest from a more diverse student base, including in big increase in both minority and foreign applicants.
- An “A” average is now just average, with an enormous increase in high school students taking advanced math classes.
John Hancock’s advice to parents about all this:
- Meet with a guidance counselor or outside education consultant.
- Make sure the child has letters of recommendation from a variety of sources.
- Apply to more “safety schools” as backup options.
It’s the final piece of advice John Hancock offers parents that might be of interest to grandparents of college bound grandkids: “Remember to sit down with your financial professional who can help you make decisions on affordability and help you implement a plan, including the use of a 529 education savings account.
In fact, in our client consultations at Geyer Law, we find more and more grandparents interested in helping with grandchildren’s college costs. As a Raymond James information piece sums up the situation: “Helping to pay for a grandchild’s college education can bring great personal satisfaction and is a smart way for grandparents to pass on wealth without having to pay gift and estate taxes.”
The three principal methods of helping grandchildren with college costs are:
- Annual exclusion gifts – gifts of up to $16,000 per donor in 2022 ($32,000 for a married couple) can be made to each recipient each year.
- Contributions to 529 plans (the money grows tax free and withdrawals for qualifying education expenses are federal income tax free).
- Unlimited direct cash gifts to the college (these can cover only tuition, room and board) are removed from donors’ estates. (One caution.is that a grandchild’s eligibility for financial aid may be reduced.)
In today’s competitive college climate, these “need-to-knows” are important for parents and grandparent alike.
– by Ronnie of the Rebecca W. Geyer blog team
“You want what’s best for your children. That includes helping to ensure that they’re admitted into the best colleges. But the college admissions environment has changed,” John Hancock Investment Advisors offers in Financial Advisor Magazine. How?
Students are applying in record numbers, with a more than 20% increase compared with just two years ago.
Colleges are receiving interest from a more diverse student base, including in big increase in both minority and foreign applicants.
An “A” average is now just average, with an enormous increase in high school students taking advanced math classes.
John Hancock’s advice to parents about all this:
Meet with a guidance counselor or outside education consultant.
Make sure the child has letters of recommendation from a variety of sources.
Apply to more “safety schools” as backup options.
It’s the final piece of advice John Hancock offers parents that might be of interest to grandparents of college bound grandkids: “Remember to sit down with your financial professional who can help you make decisions on affordability and help you implement a plan, including the use of a 529 education savings account.
https://www.fa-mag.com/news/what-parents-need-to-know-about-todays-college-admissions-landscape-69983.html
In fact, in our client consultations at Geyer Law, we find more and more grandparents interested in helping with grandchildren’s college costs. As a Raymond James information piece sums up the situation: “Helping to pay for a grandchild’s college education can bring great personal satisfaction and is a smart way for grandparents to pass on wealth without having to pay gift and estate taxes.”
https://www.rgeyerlaw.com/
https://www.raymondjames.com/nicholsonfs/pdfs/college/grandparents%20helping%20grandchildren.pdf
The three principal methods of helping grandchildren with college costs are:
Annual exclusion gifts – gifts of up to $16,000 per donor in 2022 ($32,000 for a married couple) can be made to each recipient each year.
Contributions to 529 plans (the money grows tax free and withdrawals for qualifying education expenses are federal income tax free).
Unlimited direct cash gifts to the college (these can cover only tuition, room and board) are removed from donors’ estates. (One caution.is that a grandchild’s eligibility for financial aid may be reduced).
In today’s competitive college climate, these “need-to-knows” are important for parents and grandparent alike..
– by Ronnie of the Rebecca W. Geyer blog team
