As the school season ends, many Florida families are thinking about how to manage and fund the costs of education for the coming academic year. Whether it’s private elementary school, a prestigious high school or college tuition, these expenses can add up quickly.
Parents and grandparents often want to help their young loved ones benefit from an excellent education—but doing so without disrupting long-term financial goals requires careful planning. Fortunately, estate planning tools like trusts can provide a flexible and effective way to preserve assets for education while maintaining control and protecting family wealth.
Common options for parents and grandparents
Florida families can use various types of trusts to earmark funds specifically for educational purposes. A common option is an irrevocable education trust, which allows a parent or grandparent to transfer assets into a trust that will be used to pay for private school or college expenses. Because the assets at issue are no longer part of the donor’s taxable estate, this strategy can offer estate tax benefits and help shield those funds from creditors or lawsuits.
Another flexible tool is a revocable living trust, which can include specific provisions directing funds to be used for educational costs at certain milestones. These provisions can help to ensure that funds are distributed when needed—such as before each academic year—rather than all at once. This kind of structure can help prevent overspending and ensure that support for a child’s education continues over time.
Parents who want to retain more control during their lifetime might choose to create a 529 college savings plan in conjunction with their estate plan. These plans allow for tax-deferred growth and tax-free withdrawals when used for qualifying educational expenses, including private K-12 tuition up to certain limits. While 529 plans are not technically trusts, they can be integrated into an estate plan through gifting strategies and beneficiary designations.
In families where one child may attend private school and another may not, estate planning can help balance educational support with long-term inheritance goals. A well-drafted trust can equalize distributions, ensuring that each child receives a fair share of family resources even if their educational paths differ.
Florida law permits a wide range of customization in trusts, including “incentive provisions” that can tie distributions to academic achievement or enrollment status. These options can motivate and support children while preserving the integrity of the estate.
There is no one-size-fits-all approach that best suits every family. With thoughtful planning, parents can provide valuable support for their children’s academic futures while protecting their assets and honoring their broader estate priorities in unique ways.