Is Grandma’s Gift Costing Your Child College Financial Aid?

Aug. 19, 2009 - PRLog -- “We often meet grandparents who want to open mutual fund accounts for young grandchildren using Uniform Trust to Minor Accounts.  While this seems like a great gesture because of a small initial tax savings, it can be the worst way to help the grandchildren,” reports Jeff Moore, President of JM GetMoore Insurance and Financial Services L.L.C.  “By providing college funding with mutual funds, there will be income taxes (the kiddie tax) once the fund grows beyond a certain size and the fund could keep the grandchild from qualifying for financial aid.  A better solution is to use a variable or universal life insurance policy.  The money will grow tax-free and provide an amount far in excess of the premiums paid.  It’s possible that a $50,000 fund could pay off $200,000 in death benefits, tax-free.  This is an option simply overlooked because the mutual fund industry has been better at marketing vehicles for college funding than the life insurance industry.”

 Jeff Moore has dedicated over 11 years to educating community members on their investment planning options.  He periodically contributes his knowledge to various newspaper and industry publications and frequently offers public seminars on insurance and financial topics of interest.  For an interview or details on this issue, phone him at (956) 928-1811 or visit the JM GetMoore Insurance & Financial Services website at www.getmooreinsurance.com.

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About JM GetMoore Insurance and Financial Services L.L.C: Our Firm is recognized as one of the Rio Grande Valley's leading experts in the field of business planning services, having dedicated over 10 years to helping small business owners, addressing four major areas of their concern:

1) Buy/Sell Agreements & Funding
2) Estate and Succession Planning
3) Key-Employee Protection & Executive Bonus Arrangements
4) Business Planning & Consulting