Setting up an educational trust in Washington is more complicated than people often realize. Even though many parents and grandparents want to help their loved ones pay for their education, finding the best financial vehicle can be a confusing and challenging process. Those who are interested in establishing an educational trust should spend some time exploring all of their options before signing any legal documents.
There are many different trusts and savings plans to choose from, and each option has its own pros and cons. With a pot trust, the benefactor will put money in a single account that all of their beneficiaries have access to. When a beneficiary needs to pay for their education, they will formally request funds from that account. Unfortunately, that type of account can result in an unequal distribution of money if a beneficiary pulls too much out.