An education unitrust is created by a parent or a grandparent typically for a child or grandchild. It generally pays out a fixed percentage for a term of years. Additonal contributions, if applicable, are listed under the first box. While there are no specific restrictions on permissible investments, the trustee is bound by the prudent investor principles and the requirement of Section 4944 of the Internal Revenue Code not to invest in a manner that jeopardizes the charitable remainder. Usually, the trustee selects good quality stocks and bonds as investments.
Life insurance is also a possiblity to explore.
More if a higher bracket. Of course, if the tax bracket changes, tax savings will change. The total tax savings may not always be available in the year of the gift. More about that. In the center lower section of the chart which we can provide for you is an explanation of the income benefits to the student.