PLANNING FOR UNBORN CHILDREN

COU

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future
college costs. 529 plans, legally known as qualified tuition plans, are sponsored by
states, state agencies, or educational institutions and are authorized by Section 529 of
the Internal Revenue Code.Jan 6, 2014
SEC.gov | Introduction to 529 Plans
https://www.sec.gov/investor/pubs/intro529.htm
An Introduction to 529 Plans
What is a 529 plan?
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. 529
plans, legally known as qualified tuition plans, are sponsored by states, state agencies, or educational
institutions and are authorized by Section 529 of the Internal Revenue Code.

There are two types of 529 plans: pre-paid tuition plans and college savings plans. All fifty states and the
District of Columbia sponsor at least one type of 529 plan. In addition, a group of private colleges and
universities sponsor a pre-paid tuition plan.

If you want to start education saving you can open a 529 account. Be sure to do some research to see
which 529 is best for you. A lot of the times your home state 529 will get you lower fees than an out of
state 529.
It is important to note that most 529 require minimum contributions each month so if you have no
immediate plans in the next 5 years to have a kid than I suppose you can wait on starting one.

529 are only for education expenses as they cannot be used for anything else. you cannot open a 529
for an unborn child so you have to open it up under your name and then you can switch beneficiaries
when the child is on its way.

My advice is to open a 529 until you are sure you are having a baby. I understand its nice to get a
ahead but i once received advice that a 529 for 18 compounding years is enough for college.

You can not invest directly in a 529 plan for unborn children. The two types of 529
plans are college savings plans, which are investment accounts for education
expenses, and prepaid tuition plans, which allow you to buy credits at participating
schools for future college costs. Beneficiary eligibility requirements can differ between
the two types, but both require that the beneficiary has been born. However, you can
indirectly begin a 529 plan for an unborn child by naming a different beneficiary for
the plan temporarily.
Unborn Children And The College
Tax Dodge

Advice to young adults: Its never too early to start saving for your
kids college costs. Start, if you can, ten years before they are born.
Compounding works wonders over long stretches of time.

You can set up a Section 529 college savings account anytime. Create
one naming yourself as beneficiary. Years later you can change the
beneficiary to your first-born. You can make another change, splitting
the account in two, when the second baby arrives.

A childless adult who funds a college account is ostensibly saving for

him- or herself (you might, after all, start grad school at age 35). Tax-
free earnings start accumulating right away. You can change your
mind later about whose degree will be funded.

Why would you start saving so far in advance of a tuition bill? Because
college is ridiculously expensive. Without a discount, an Ivy League
degree is going to cost todays freshman just about a quarter of a
million dollars.

If you start putting aside $10,000 a year when the baby arrives, youll
have contributed only $180,000 when the kid matriculates. There will
be earnings on the account, presumably, but a good guess is that they
will just keep up with inflation in college costs. Eighteen years at
$10,000 wont pay for Dartmouth.

You have three kids? Youd need $750,000 today, and God knows how
much if the oldest starts attending two decades from now.

What if you set up a college account and then dont have children? Or
they dont go to college? You can liquidate the account and use it for
other purposes. If the money isnt spent on higher education, youll
owe state and federal income tax on the earnings plus a 10% federal
surtax on those earnings.
The pain of the surtax is partly offset by the value of the tax deferral.
The net effect is that the 529 ploy may be a wise gamble if there is even
a 50-50 chance that you or someone in your family will eventually use
the money on education. But it wouldnt make sense to set up a 529 if
theres no chance the account will be used for the proper purpose.

Withdrawals from a 529 plan are free of income tax so long as the
proceeds are used on higher education (tuition, room and board).
Each state sponsors its own plan, but its citizens are free to invest in
another states plan, a good strategy if the home-state plan has stiff
fees. Two-thirds of the states offer a deduction or credit against their
own income tax for contributions to the home-state plan.

The person who funds the account is the owner and names the
beneficiary. The owner can change the beneficiary from himself to a
relative or from one family member to another without penalty.
(Changing the ownership is another matter; its difficult to do in some
states but rarely necessary.)

Because of these rules, it is often a good idea for a saver to set up an

account before its clear who will be using it. I advocate this for
grandparents who have a lot of grandchildren but dont want to go
through the paperwork and Social Security numbers right away, says
Joseph Hurley, who runs Savingsforcollege.com, a repository of info
on 529s. Just open the account in your own name and figure it all out
later.

Newlyweds should consider funding a 529, even if they are planning to

hold off on starting a family. For that matter, you could open an
account while youre just dating.

Before plunging in, though, answer three questions:

Are you saving the max in your 401(k)? Thats $17,500 a year for
younger employees. Two reasons to fund retirement before college:
The retirement account is a more powerful tax tool than the 529, and
retirement assets wont count against you when your child applies for
financial aid.
Do you have spare cash? Do the 529 only after setting aside six
months of living expenses plus enough for a house down payment.

Does your home-state plan have low fees and/or a valuable

tax deduction? If it doesnt, sign up for the New York plan, which
offers index funds at a cost of 17 basis points ($17 per year per
$10,000 invested). The quickest way to see where your state stands is
to go to Hurleys site and use the compare 529 plans function.

How to Start a College

Bond for an Unborn Child
By Angela M. Wheeland

Buy U.S. savings bonds now to start saving for your child's future.

U. S. savings bonds offer a low-risk way for you to invest money for your
unborn childs education. Savings bonds earn interest over a period of 20 to
30 years, depending on the bond. Series EE and Series I bonds can be used
to help pay for your childs education, and the interest on the bond is not
taxed by the Internal Revenue Service as long as you use the money to pay
for your childs qualified educational expenses. You must be at least 24 years
old on the first day of the month in which you buy the savings bond.

Sponsored link

Start Download - View PDF

Convert From Doc to PDF, PDF to DocSimply With The Free On-line App!
www.fromdoctopdf.com

Set up an account through the U.S. Department of the Treasury's

TreasuryDirect website. You must provide your name, address, Social
Security number, email address and your bank routing number and account
number.

Log into your new account and click the BuyDirect link. Click the button
next to the Series EE or Series I savings bonds.

Enter the amount of bond you want to purchase for your unborn child. For
example, if you want to buy a Series EE savings bond with a face value of
$5,000, type $5,000 in the field.

Select your checking or savings account as the source from which to pay for
the bond. Click the Submit button.

Review the details on the confirmation page to make sure everything is

correct. Click Submit to buy the bond. Your account will reflect the
purchase and list the electronic savings bond

Hold on to the savings bond until your child is ready to start college.

Cash in the bond using your TreasuryDirect account.

Pay your childs college expenses using the money from the savings bond in
the same year that you cashed in the bond. If you dont, youll have to pay
taxes on the interest.
File your taxes using the Form 1099-INT you receive from the Treasury
Department. Complete Form 8815 to show that the savings bond and
interest was used on educational expenses.

Child Trust Fund

From Wikipedia, the free encyclopedia

A Child Trust Fund (CTF) is a long-term savings or investment account for children in the United
Kingdom. New accounts cannot be created but existing accounts can receive new money. CTF has
been stopped in 2011. They have been replaced by Junior ISAs.[1][2]

The UK Government introduced the Child Trust Fund with the aim of ensuring every child has
savings at the age of 18, helping children get into the habit of saving whilst teaching them the
benefits of saving and helping them understand personal finance. The Child Trust Fund scheme was
promised in the Labour Party's 2001 election manifesto,[3] and launched in January 2005, with
children born on or after 1 September 2002 eligible.[4]

Eligible children received an initial subscription from the government in the form of a voucher for at
least 250. In 2010/11 the child trust fund policy was expected to cost around 520m, less than
0.5% of the 84bn UK education budget.[5] Because the scheme allows for family and friends to top
up trust funds, it has given a substantial boost to savings rates, particularly among the poor.
According to the Children's Mutual, "In terms of changing people's behaviour, this is the most
successful product there's ever been."[6] For households with income of 19,000 a year, 30% of the
children in that category are having 19 a month saved for them. Part of this is due to grandparents
being more willing to contribute to funds, since the money cannot be diverted to the family finances.
[6]
Creation of new funds and Government payments into them were ended in January 2011 by
the Savings Accounts and Health in Pregnancy Grant Act 2010.

Details[edit]
The funds are held in trust for the child until they turn 18, and the money is then theirs to use as they
see fit. CTFs are managed by the parents/legal guardians of the child until the child reaches the age
of 16. At this point, the child will have the option to take over management of the account including
choice of provider and investment decisions. However, they will still not be able to withdraw funds
from the account until reaching 18. The government has stated that they will be introducing a
programme of education in personal finance in schools to enable 16-year-olds to competently
manage their CTF.

All of the funds in the account are exempt from income tax and capital gains tax, including at
maturity. However, the 10% dividend tax payable on franked income (UK share dividends) cannot be
reclaimed. The UK government has stated that at age 18 it will be possible to transfer the entire CTF
into an ISA to keep the tax-free status of the investment. If the CTF is withdrawn as cash, the tax
benefits will be permanently lost.
Vouchers[edit]

At birth: The government gave every eligible child a voucher worth 250 to open the
account, and also a further 250 directly into the accounts of children who live in low income
families.

At age 7: The government would have made an additional payment of 250 into the
account, with a further 250 for children in low income families.

At age 11: The government was consulting on the possibility of a further voucher at this age.

If vouchers were not invested within one year of issue, HM Revenue and Customs would open a
stakeholder account on behalf of the child. Subscriptions by individuals were in addition to any
voucher subscriptions.

Subscriptions[edit]
Parents and other family members or friends can pay 3,600 a year into their childs fund from 1
November 2011, previously 1,200.[14] Any gains or dividends will be tax free (except for the 10% tax
on UK share dividends). Stakeholder accounts cannot set the minimum contribution above 10, but
the provider can set a lower minimum.

Eligibility[edit]

Every child born on or after 1 September 2002 was eligible for the CTF, as long as:

child benefit has been awarded for them;

they are living in the United Kingdom; and

they are not subject to immigration controls

The children of Crown servants posted abroad including the Armed Forces qualify because they
are treated as being in the UK.

Investment options[edit]

Most advisers recommend equity-based CTFs, and the fact accounts allocated by HM Revenue and
Customs are put into stakeholder products indicates that the government also believes equities are
the best option over such a long period.

Stakeholder accounts invest in shares, with a set of rules ("stakeholder standards") to

reduce financial risk. These include provision for money in the account being gradually moved to
lower risk investments or assets when the child reaches age 13. This is to help to produce a
stable return in the run up to the child's 18th birthday. The charge on a stakeholder account is
limited to no more than 1.5 per cent a year, whereas charges on all other types of CTF account
are not limited in this way.
 Savings account. These operate in a similar way to a bank deposit account; there is a rate
of interest and the nominal value of the funds is secure.

Non-stakeholder account. Invests funds according to the type of product. These accounts
are not protected by the "stakeholder standards".

CTF funds can be transferred between providers. Rules for transfers are similar to those
for Individual Savings Accounts customers should inform the new provider they wish to use and
they will undertake the move. No penalty or fee can be imposed for transferring the account, except
for the cost of selling shares (such as dealing charges) in equity accounts.

Abolition[edit]
On May 24, 2010, the Chancellor of the Exchequer George Osborne MP and Chief Secretary to the
Treasury David Laws MP announced that the 250 top up payments into the child trust fund would

cease in August 2010, with no payments for newborns from the end of 2010. [15] The Savings
Accounts and Health in Pregnancy Grant Act 2010 facilitates the abolition of the fund.

Junior Individual Savings

Accounts (ISA)
1. Overview
2. Open an account
3. Add money to an account
4. Manage an account
4. If your child is terminally ill or dies

1. Overview
Junior Individual Savings Accounts (ISAs) are long-term, tax-free
savings accounts for children.

In the 2016 to 2017 tax year, the savings limit for

Junior ISAs is 4,080

 Who can get a Junior ISA

Your child must be both:

o under 18
o living in the UK

If your child lives outside the UK

Your child can only get a Junior ISA if both the following apply:

o youre a Crown servant (in the UKs armed forces, diplomatic

service or overseas civil service, for example)
o they depend on you for care

You cant have a Junior ISA as well as a Child Trust Fund. If you want to
open a Junior ISA ask the provider to transfer the trust fund into it.

How Junior ISAs work

There are 2 types of Junior ISA:

o a cash Junior ISA, eg you wont pay tax on interest on the cash
you save
o a stocks and shares Junior ISA, eg your cash is invested and you
wont pay tax on any capital growth or dividends you receive

Your child can have one or both types of Junior ISA.

Parents or guardians with parental responsibility can open a

Junior ISA and manage the account, but the money belongs to the child.

The child can take control of the account when theyre 16, but cant
withdraw the money until they turn 18.

Sheikh Mohammed bin Rashid announces

UAE Strategy for the Future
The National staff
 September 28, 2016 Updated: September 29, 2016 03:37 PM

Related

Dubai Ruler sets sights on a world-leading city

Sheikh Mohammed bin Rashid launches Government Accelerators - in pictures

Sheikh Mohammed speeds progress towards National Agenda 2021 goals

Ten years of continuous progress

Sheikh Mohammed bin Rashid: Time to reflect on 10 years progress

Topics:

Sheikh Mohammed bin Rashid

DUBAI // All government departments will appoint "directors of future planning" under a national
strategy announced on Wednesday by Sheikh Mohammed bin Rashid, Vice President and Ruler of
Dubai.

Sheikh Mohammed described the UAE Strategy for the Future as an "integrated strategy to forecast
our nations future, aiming to anticipate challenges and seize opportunities". It was launched under
the directives of the President, Sheikh Khalifa.

Departments must abandon obsolete or irrelevant thinking and focus on the future, Sheikh
Mohammed said.

The strategy is mandatory for government department operations, to build the countrys talent and
strengthen international partnerships.
A college and laboratories specialising in future studies will be established, Sheikh Mohammed said.

"The strategy includes modelling the future of our health, education, social, development and
environment sectors, and building capacity," he said.

Future planning will also become part of the school curriculum. Qualified Emiratis will be trained in
the subject and lessons designed for the UAE will be taught in national universities.

Ministers will be expected to represent the country as "ambassadors of the future" and reflect the
countrys pioneering global position.

"As a nation, we have always been forward-looking and planning for the future, which has been a
key driver of our success," said Sheikh Mohammed.

"The UAE Strategy for the Future is our new approach to planning for the future by predicting,
analysing and implementing highly effective action plans that accelerate development."

The strategy will also be a referral point for departments to adopt proactive planning "to usher in an
even more prosperous tomorrow for our current and future generations", Sheikh Mohammed said.

"The citizens of the UAE are our most important resource in building our future. To nurture their
skills, we will strengthen education and training initiatives."

Mohammed Al Gergawi, Minister of Cabinet Affairs and the Future, said the strategy would help the
Government efficiently address shifts in global trends and identify challenges and opportunities.

The strategy involves planning in three stages: for the next five years as part of UAE Vision 2021; for
2021 to 2026; and for 2026 and beyond.

By 2026, the Government "would be even more responsive and adaptable to changes", Mr Al
Gergawi said.

"The long-term strategy goes beyond 2026 and we will commence work now to both foresee and
build the future of the nation."

The strategy follows a plan announced in April to make the UAE a centre for technology and
innovation in areas such as 3-D printing for building projects. In January, the countrys leaders
announced strategies to chart a post-oil economy. It would include plans for changes in human
capital, the creation of a knowledge-based economy, government policies and community.