Saving Social Security Survivor Benefits for College?

Judy
Gold Post Medal for All Time! 677 Posts

May 25, 20180 found this helpful

Yes, and if your state has a 529 plan, what you put in the plan can be used as a tax deduction

cybergrannie
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May 26, 20180 found this helpful

Survivor benefits for a child are given to a guardian to use for the child's care so if you do not need this money for his care then you can set aside as much as you wish for his future use.

• Do you know that he wishes to attend college when he graduates?
• Do you know what college he "plans" to attend? State college or Junior college?
• If he has a specific college in mind, will his grades qualify him to attend that college?
• If you are not sure of any of these answers then why not discuss it with him and maybe even discuss it with his school counselor as knowing his plans could mean a big difference in how you should save his "college" money.
• If he knows his plans and they look good to you then you could contact the college to see what sort of plans they have for investing as many plans can save a lot of money on tuition.
• Your state may also have a college investment plan that might save you money although these plans usually start at a younger age.
• You can Google state college plans with your zip code or state and see what is available.
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• Be very careful that you do not just set this up so he will have immediate access to "pay his way" as it may be too tempting and he may not follow the original plan.
• Most people thinking about doing this will consult an attorney and let them set up the plan so you can be assured the money will be used for his college (and not a new car or?).
• You can always decide to give him the money later if that is your wish but young adults do not always think about their future when a lump sum of money is available.
• Social Security only specifies that money is to be used for his care and since you are providing that then you should be able to save any (or all) of that benefit for his future care.

Pghgirl40
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May 27, 20180 found this helpful

God bless you for raising your grandpunkin!! You have my condolences on the loss of his parents.

When dealing with finances and planning for a child's future, you may want to talk to a professional (certified) financial planner.

The ones I know do not charge you to talk to them (if someone wants to charge you, say no thank you and leave). Typically a financial planner make their money from a commission if you open an account/accounts. You will want one who gives you several options. If they push one plan and one plan only, again, say thanks, bye and leave.

To find someone, talk to your friends/family/coworkers and find out who they have used and trust. We have very little and wanted to be sure our small nest egg was protected. The person we found was a referral from my best friend who did all the research with her network of contacts. This person came highly recommended and we have been very pleased.

The ideal person should be low pressure and give you time to research any accounts before you sign on the line. Also some banks have free financial planning services.

If you don't know anyone who has used a person or your local bank, my fall back is to Google it. The search I would use is as follows:

Person or bank name + financial planning + your city + reviews

So John Q Financial Planner + Financial Planning + Pittsburgh + Reviews. Then just scroll through and see what you see. If the reviews are good...go with them...bad...keep searching!

Do the same type of search with account types...like ACME annuity + reviews and make sure people are pleased with the investments.

Starting now to help him have a secure financial future is so important!!

Remember, you are laying the groundwork so he has a good, solid start for his financial future!!!