I was talking to someone regarding saving for college education. I mentioned that I was putting money into a 529 account but wasn't happy with this. My kids my not decide to go to college and therefore the 529 would incur penalties. They mentioned I should look at a 'Life Establishment Fund' I haven't been able to find much information on this but it seems to be like a Trust ?
Anyone have more information ?
It's just money in an account somewhere with no tax shelter or string attached, to help maturing children (18-22ish) get a kick start in life whether they go to college or not. Basically, the money can be used for anything (for you or them). Or you can put it in a UGMA-type account where it's technically the child's funds and not yours (but check how college loans are calculated before dumping a bunch of money in those, I believe they are looked at differently, maybe as the first source of funds that gets tapped and could impact loan qualification).
