Planning for your children’s educational future is the most important legacy we can leave them in life. That is why it is necessary to plan them in the most efficient and safe way possible, avoiding exposing them to risks that could affect them.<\/p>\n
K&B Family Office offers the education trust, which allows you to achieve these goals. You can entrust the administration of assets for the education of their children to a trustee, thus ensuring their future.<\/p>\n
The trustee is an entity regulated by the Superintendence of Banks of Panama, in which you, as a trustor, transfer the assets destined to the education of your children to a trust, for the correct administration of the resources.<\/p>\n
The trust is a contract or a legal act of confidence by virtue of which one or more persons transfer assets, amounts of money or rights, present or future, of their property to a trustee (regulated legal entity) for the administration of these funds for the benefit of a third party. In this case, you transfer the funds for the future management of your children’s or beneficiaries’ education.<\/p>\n
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How is an Educational Trust prepared?<\/p>\n
Once the parties to the trust are established, the trustee structures the education trust contract, setting forth the wishes and instructions that you as the trustor stipulate for the destination of your children’s education. Then, a bank account is opened specifically to safeguard the funds to fulfill the purpose of the trust. Once the bank account is opened, the assets are transferred and managed by the trustee according to your wishes as expressed in the trust agreement.<\/p>\n
Once the trust is operational, the trustee will address the objectives set out in a payment schedule, which will be prepared in conjunction with you and your children, which will stipulate the frequency, amounts to be paid and to which institutions the funds will be sent.<\/p>\n
What are the advantages of the Educational Trust?
\nThere are many advantages to using an Educational Trust. Among the most relevant we can highlight:<\/p>\n
The protection you receive, since the funds destined to your children’s education, once transferred to the trust account, are unseizable.
\nThe peace of mind of knowing that the funds are managed by a professional with a license issued by the Superintendency of Banks of Panama to provide such service.
\nThe control of the trustee’s management, thanks to the annual accounts submitted to each parent of the family; these accounts are audited by qualified professionals outside the trustee.
\nThe flexibility in the administration of the assets since it is not only used for the commitments with the University, but in the same way, they can be used for payments of housing, food, optional courses, insurance policies, university projects, future master’s degree studies, graduation expenses, among others, as long as they are related to fulfill the purpose of study of their children.<\/p>\n
Complementing the multiple benefits of the Education Trust, K&B Family Office offers the possibility for your children to acquire a credit card to meet their needs, which is a means to instill education in financial management, control and own expenses.<\/p>\n
We also offer the preventive alternative of a life policy for the parent, in which specific criteria are stipulated in favor of the education trust of your children. In this way, you can provide your children with the security of having an estate destined for their university studies in the event of a fortuitous case or circumstances beyond your will and control, in which you are prevented from accompanying them in this important stage of their lives.<\/p>\n
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Jorge \u00c1vila<\/strong> To learn more, contact us at:<\/strong> <\/p>\n May, 2018<\/p>\n
\nHead of Fiduciary and Compliance – Partner<\/strong><\/p>\n
\ninfo@kb-familyoffice.com<\/a><\/p>\n