Protecting Financial Aid Eligibility: What You Should Know About Estate Planning & Taxes with Brad Baldridge

Did you know that improper inheritance planning could cost your family thousands of dollars in lost financial aid? In today’s world, estate planning is more critical than ever, but the implications can extend far beyond what meets the eye, including affecting your child's educational future.

In this episode of Cut to the Chase: Podcast, you’ll meet Brad Baldridge, one of the nation’s leading college financial experts and the brain behind "Taming the High Cost of College." Brad teaches families the best ways to plan, save and pay for college so they can make their children’s college dreams come true without wiping out their finances or retirement.

Learn how you can protect your clients' financial aid prospects and ensure a smoother college financing journey!

Tune in as we break down how financial aid eligibility is influenced by inherited IRAs, estate planning, and early vs. late-stage college planning. You’ll learn how to optimize estate plans to mitigate taxes and maximize financial aid for your kids. 

Plus, Brad shares real-world examples, including how a $250,000 inheritance in a trust eliminated a student's eligibility for financial aid!

What to expect in this episode:

• Understanding Inherited IRAs and their mandatory 10-year withdrawal rule

• The impact of IRA withdrawals on college financial aid eligibility

• Real-world estate planning scenarios and their pitfalls

• The role grandparents play in college financial planning

• Why you should seek professional advice for optimizing financial aid

• Strategies for dividing inherited assets between siblings

• Navigating disagreements among beneficiaries

• Late-stage vs. early-stage college financial planning

• Exploring scholarship opportunities and state school alternatives

• How to utilize 529 college savings plans effectively

• Loan options and their implications on family finances

Key Actionable Takeaways for Law Firms & Parents:

• Understand how inheritance and estate planning can affect financial aid eligibility for your clients’ children.

• Guide clients on optimizing asset placement to minimize financial aid reductions.

• Ensure your estate planning attorney is well-versed in financial aid impact and collaborates with financial planners.

• Educate clients about the benefits of early financial planning for college expenses.

• Help grandparents plan their estates in a manner that benefits their grandchildren’s education without impacting aid eligibility.

• Advocate for comprehensive, late-stage college planning starting in high school.

 

Stay tuned for more updates, and don't miss our next deep dive on Cut to The Chase: Podcast with Gregg Goldfarb!

Subscribe, rate, review, and share this episode of the Cut to the Chase: Podcast to stay ahead in your legal practice!

 

Resources:

Visit Brad’s website to learn more: https://tamingthehighcostofcollege.com

Listen to the Taming the High Cost of College Podcast: https://tamingthehighcostofcollege.com/category/podcast

Connect with Brad Baldridge on LinkedIn: https://www.linkedin.com/in/bradbaldridge

 

This episode was produced and brought to you by Reignite Media.