Desoto, TX asked in Estate Planning for Texas

Q: Would a trust be the best way to help pay for college for my former exchange students who live in different countries?

I hosted three exchange students; Mozambique, Paraguay and Nigeria.

Related Topics:
1 Lawyer Answer
Terry Lynn Garrett
Terry Lynn Garrett
PREMIUM
Answered
  • Estate Planning Lawyer
  • Austin, TX
  • Licensed in Texas

A: Creating a trust can be expensive.

You can create a Texas corporation online yourself using the documents on the Texas Secretary of State's website and register it as a not-for-profit corporation the purpose of which is promoting education. You must have three people on the board. You must keep records of annual meetings. You must submit an annual information report. Paying a lawyer to help you set up the documentation for the corporate by-laws and annual meetings and registering the corporation as a not-for-profit corporation with the IRS is probably less expensive than paying a lawyer to create a trust. In addition, a trust will be taxed on its earnings at compressed tax brackets, which could get expensive.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.