Planning your estate, whether young or old, is very important.  Sound advice from your accountant, financial advisor, insurance agent and estate planning attorney can help you plan for whatever bumps in the road you encounter during your lifetime.  Younger couples must establish a financial plan to make sure they provide for their children and can enjoy a comfortable retirement.  Older couples may want to diversify or restructure their portfolios to ensure they have enough money to last throughout retirement and minimize exposure to taxes and long-term care.  Parents of school aged children must be careful not to decrease their families eligibility for need based financial aid while developing their estate plan. Some estate planning strategies that may affect your eligibility for financial aid include:

• Saving In Your Child’s Name – Many families establish UTMA/UGMA  accounts to save for college.  While these accounts may potentially offer tax savings, because student assets are assessed higher than a parent asset during the financial aid process, the reduction in need based financial aid can be much greater than the potential tax savings.
• Lifetime Gifting – One strategy to minimize estate tax is taking advantage of the annual $13,000 exclusion and gifting to others.  While this may be an appropriate strategy for estate and tax planning, it may have a devastating effect on financial aid eligibility.  Be sure to discuss your plan with an estate planning professional before utilizing this strategy or receiving a gift as part of a tax plan as there may be more appropriate options available.
• Retirement Accounts – Where your money is invested may have an impact on the amount of financial aid you may qualify for.  A review of your financial plan can determine if your investments are appropriate for your particular situation.

While there are many options in planning for retirement, minimizing tax or long-term care exposure, or developing a comprehensive estate plan, make sure your families needs are addressed in your overall plan.  Failing to plan for your childs education could frustrate your overall financial goal.