To Your Better Future

When it comes to saving for college, 529 plans are one of the most powerful tools available. They offer tax-deferred growth and tax-free withdrawals when used for qualified education expenses. But while these accounts are generally straightforward, things can get more complicated when a 529 plan is owned by a trust. Let’s break down what happens when a trust, not an individual, is the account owner, and why that matters. The Role of the Custodian in a 529 Plan In a typical 529 account, the custodian (often a parent or grandparent) maintains full control over the account. This means they can: Select and change the beneficiary (i.e., the student who will use the funds), Decide how much money to contribute, Determine when to withdraw funds and for what purposes. Importantly, custodians usually do not owe fiduciary duties to the beneficiary. That means they can change the beneficiary to someone else (as long as the new beneficiary is a qualified family member) without the o...

Several important changes to Supplemental Security Income (SSI) went into effect in September 2024. This blog may be a little delayed in covering them, but I believe it is never too late to try and simplify complex policies. My goal here is to break down the updates into plain language and explain them with everyday examples. Whether you are a parent, caregiver, or someone navigating SSI yourself, I hope this post makes things a little easier to understand. If you have a loved one on SSI, or if you receive SSI yourself, you know how stressful it can be to follow all the rules. One small mistake can lead to reduced benefits, and that’s the last thing any family needs. But here’s some good news. The Social Security Administration announced a few important changes that will make life a bit easier for SSI recipients and their families. Here’s what’s new, and why it matters. Renting from a Parent or Child Just Got Simpler In most states, when an SSI recipient rents from a pare...