I need advice about preparing my will? I have very few heirs…no husband and no children…
but I wish to leave my two great nephews money for their education. They are 15 and 12 years old. I am 72 years old and don’t know where to begin. Should I rely on my attorney for advice? Are Education IRAs a good choice?
Terry Says: I will give you some ideas for your nephews — lucky boys — but you still need a will and estate plan, and healthcare power of attorney. So I hope you will get that taken care of. In the Chicago area, I recommend Janna Dutton at 312-899-0950. But if you live elsewhere, just contact the largest bank in town and ask them to recommend a couple of estate planning attorneys. Do not delay in getting this taken care of.
Next, with regard to your nephews, I would suggest you contact Vanguard Funds to open a 529 College Savings Account for each of your nephews. Call them at 1-800-Vanguard and just get thru their phone system to talk to an agent. Then ask about opening a 529 College Savings Account. Tell them you want very conservative investments, because the money will be needed in a couple of years. The money in the account will grow tax-free to be distributed to them to use for any accredited college in any state, public or private. It is a wonderful gift, and I hope you live a long time to see them not only use the college money, but get good jobs and good lives as a result!
And just in case they don’t go to college, or you need the money for future expenses, you can get it back– paying taxes on any gains! Plus, you can always give them more money in the future so don’t put in so much that you are short of cash yourself!