My family has always valued education. Even though neither of my parents attended college, they encouraged each of their children to take advantage of every opportunity to advance their education.
They also led by example. My mother always had her nose in a book and my dad would often answer my endless questions with "look it up".
I guess their encouragement paid off. Although I may look dim, the fact is I'm an educated man. I hold a degree from my beloved alma mater, Indiana University, and a degree from the Valparaiso University School of Law. My older brother Jim has two MBAs and a PhD. I didn't even know you could get a PhDs for being a knucklehead, but apparently so.
I have tried to pass on my parent's belief in education to my children. I am constantly asking my son to spell his weekly spelling words. I also am proud to say that he loves to read.
Maybe some of you share my parents and my belief that the best way to make it in this world is to pursue an education. The education doesn't have to be a college degree. It could be a trade school or perhaps becoming an apprentice to a trade. Perhaps it is learning a skill in the military or through the Peace Corps.
If you believe in the power of education, why not include it in your estate plan? There are simple things that you can do to help advance a loved one's education.
For example, your estate plan could establish an education trust for a child or grandchild. The trust could provide the funds to help pay the costs of an education. Perhaps the trust could help support the beneficiary while he or she studies or learns a trade.
Another simple way to encourage your loved ones to educate themselves is to offer the proverbial carrot. You could create a devise that awards your loved ones financially if they complete college -- an incentive trust. I don't know if money is the root of all evil, but it is a great motivator. Why not use it to your advantage?
If you don't want to wait until after your death to encourage your loved ones to educate themselves, there are some things that you can do during your lifetime. You could help pay for the education or perhaps fund an educational account such as a 529 plan. By making gifts during your lifetime, you reduce your taxable estate and you get to see the benefits of your gift.
Another thing that you can do is to leave a testamentary provision that funds a scholarship or supports your favorite education institution. I recently worked on a trust that left money to the Highland Dollars for Scholars. It wasn't a lot, but it will help benefit some deserving students.
In my opinion, education is a family endeavor. My parents worked hard and sacrificed so that their children could work a little less hard. I'm encouraging my children by reading to them and by putting away a little money each month in a 529 plan. Although these are little steps, they can and do make a difference.
Christopher Yugo's Estate Planning column appears every Sunday in The Times. He is a member of the Indiana Bar and a Vice President and Trust Officer for Centier Bank's Trust Department. Address questions to Yugo in care of The Times, 601 W. 45th St., Munster, IN 46321. Yugo's information is meant to be general in nature. Specific legal, tax, or insurance questions should be referred to your attorney, accountant or estate-planning specialist.
