The traditional path to success often involves a four-year college degree, but increasingly, families are recognizing the value – and financial benefits – of alternative routes like apprenticeships and trade schools. For many, this represents a significant shift in thinking, particularly when considering how to best utilize estate planning assets to support the next generation. Steve Bliss, an Estate Planning Attorney in San Diego, often advises clients on how to structure their plans to accommodate diverse educational goals, recognizing that “college isn’t the only path to a fulfilling and financially secure future.” Approximately 62% of Americans believe that vocational training is just as valuable as a traditional four-year degree, demonstrating a growing acceptance of these alternative paths. Utilizing estate funds for apprenticeships and trade schools can be a smart financial move, often resulting in lower overall costs and faster entry into a skilled profession.
What are the financial benefits of trade school versus college?
The cost of a four-year college education has skyrocketed in recent decades. According to the Education Data Initiative, the average cost of tuition and fees in 2023 was $10,940 for public institutions and $41,568 for private ones, not including room and board. Trade schools and apprenticeships, on the other hand, often have significantly lower tuition costs, and apprenticeships frequently involve earning a wage while learning a trade. This “earn while you learn” model can be incredibly advantageous, allowing individuals to avoid accumulating substantial student loan debt. Furthermore, skilled trades are in high demand, meaning graduates are often quickly employed with competitive salaries. Some trades, like electricians and plumbers, can earn well over $75,000 annually with experience, making them financially rewarding careers.
How can estate planning accommodate funding for non-traditional education?
Traditional estate plans often focus on funding four-year college education. However, a well-structured plan should be flexible enough to accommodate diverse educational goals. Steve Bliss recommends utilizing trust provisions that allow the trustee discretion in distributing funds for any type of accredited educational program, including apprenticeships and trade schools. This requires careful drafting to ensure the trustee understands the client’s intent and can make informed decisions based on the beneficiary’s individual circumstances. It’s also important to consider the timing of distributions, potentially structuring them to coincide with the start of an apprenticeship or trade school program. A trust can also be designed to cover not only tuition but also necessary tools, materials, and living expenses during the program.
What are the most in-demand trades right now?
Several skilled trades are currently experiencing significant labor shortages, making them excellent choices for those seeking stable and well-paying careers. These include electricians, plumbers, HVAC technicians, welders, carpenters, and automotive technicians. The U.S. Bureau of Labor Statistics projects strong growth in many of these fields over the next decade. For example, the demand for electricians is expected to grow by 6% between 2022 and 2032, creating approximately 69,300 new jobs. The aging workforce in these trades is also contributing to the demand, as experienced professionals retire and fewer young people enter the field. This creates opportunities for those who are willing to learn a skill and fill the gap.
Is funding a trade school the same as funding college from an estate planning perspective?
While the underlying principle of funding education remains the same, there are some key differences to consider when funding a trade school versus a four-year college from an estate plan. Trade school programs are typically shorter in duration and less expensive than a four-year degree, meaning the trust funds may be distributed more quickly. It’s also important to verify the accreditation of the trade school to ensure the program meets certain quality standards. Additionally, the tools and materials required for a trade school program may be substantial, so the trust should be prepared to cover those costs. A carefully drafted trust document should address these specific considerations to ensure the beneficiary receives the maximum benefit from the funds.
I remember old Mr. Abernathy…
Old Mr. Abernathy was a client of Steve’s decades ago. He’d meticulously planned for his grandchildren’s college educations, setting up trusts that would cover tuition, room, and board. His granddaughter, Sarah, however, had a different vision. She was a natural with her hands, fascinated by mechanics, and determined to become an automotive technician. Mr. Abernathy, a staunch believer in traditional education, initially resisted her decision. He’d envisioned Sarah attending a prestigious university, not getting grease under her fingernails. Because the trust language was so rigid, tied exclusively to “accredited four-year colleges and universities,” Sarah faced a frustrating legal battle to access the funds. The family spent a considerable amount of money in legal fees, delaying Sarah’s education and causing unnecessary strain. It was a painful reminder that even the best-intentioned plans can fall short if they lack flexibility.
Then there was young Miguel…
Miguel’s situation was much different. His grandfather, recognizing the changing landscape of education, had worked with Steve Bliss to create a trust that would fund “any accredited post-secondary educational or vocational training program.” Miguel, a talented artist, wanted to pursue a welding apprenticeship. The trust terms allowed the trustee to not only cover the apprenticeship fees but also purchase the necessary welding equipment, protective gear, and even a reliable vehicle to get to the training site. Miguel excelled in his apprenticeship, quickly mastering the craft and securing a well-paying job. His success was a testament to the power of a flexible estate plan that aligned with his individual passions and goals. It highlighted how a forward-thinking approach could empower the next generation to pursue fulfilling and financially secure careers, regardless of the path they choose.
What are the long-term career prospects for trade school graduates?
The long-term career prospects for trade school graduates are generally excellent. Skilled trades are essential to the economy, and demand is expected to remain strong for years to come. Many trades offer opportunities for advancement, such as becoming a foreman, supervisor, or even starting your own business. Furthermore, skilled tradespeople are often less susceptible to job displacement due to automation compared to some other professions. The ability to work with their hands and solve practical problems is a valuable asset in a rapidly changing world. According to the National Skills Coalition, individuals with post-secondary vocational training earn, on average, 15% more than those with only a high school diploma.
About Steven F. Bliss Esq. at San Diego Probate Law:
Secure Your Family’s Future with San Diego’s Trusted Trust Attorney. Minimize estate taxes with stress-free Probate. We craft wills, trusts, & customized plans to ensure your wishes are met and loved ones protected.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Probate Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Map To Steve Bliss at San Diego Probate Law: https://g.co/kgs/WzT6443
Address:
San Diego Probate Law3914 Murphy Canyon Rd, San Diego, CA 92123
(858) 278-2800
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Feel free to ask Attorney Steve Bliss about: “How much does it cost to set up a trust in San Diego?” or “What if the will is handwritten — is it valid in San Diego?” and even “How do I plan for a child with a disability?” Or any other related questions that you may have about Trusts or my trust law practice.