College savings plans are touted, often appropriately, for their tax deferral and other benefits of saving for college costs. But are they really right for you? If you are concerned about asset protection, estate taxes, control and other issues, you might have better options than a 529 plan. Look at your overall estate plan; If setting up a family limited partnership or limited liability company to hold family assets is appropriate to your plan, then making gifts to a trust for your child rather than a 529 plan might be a much better result. The child’s trust can then invest in, and become a partner or member in the family entity, thus helping achieve a broader and more important family.
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