DON’T LET MONEY GET IN THE WAY
College expenses aren’t what they used to be. What used to be affordable to any student with a part-time summer job now can take years to pay off. If your grandkids want to go to college, the cost of education should not be a barrier to their future. Luckily there are ways that you can help ease that financial burden. Invest in a 529 savings plan. There are no limits on age, income, or monetary contributions attached to this college savings account, and contributions are tax- deductible in some states. Just like a Roth IRA, the earnings grow over time and can be used tax-free for qualifying expenses, like tuition and room and board. There are a few downsides, however. Funds from a grandparent’s 529 savings plan are considered student income and could hurt your student’s eligibility for financial aid. If you choose to fund through a parent’s 529 savings plan, which doesn’t count as student income, you lose control over the funds you contribute. Pay their tuition. Not everybody has $20,000 just lying around, but if you do, using it to pay for your grandchild’s tuition isn’t a bad way to spend it. Normally, annual financial gifts that are exempt from the federal Individuals seeking Social Security Disability often share the same questions: Where can I go to access services? How can I learn to restructure my budget with limited income? How do I get the help I need with no transportation? Are there emergency funds to assist me in the short term? We are fortunate in James City County, and throughout Virginia, to have a valuable resource that assists with all of this — the Department of Social Services (www.dss.virginia.gov). Many people think Social Services is only for children and families being placed into foster care, and, while this is some of what they do, this agency does so much more. Speaking with Kim and Ellie, two of the case managers in James City County, I learned that often they help individuals with disabilities improve their lives and become as successful as possible. So, Social Services is ready to help, great, but where can the services be accessed? Applications for SNAP, Medicaid, and TANF can all be completed online (www.commonhelp.virginia.gov/access) or over the phone (1-855-635-4370). While there are other ways to complete an application, online or over the phone streamlines the process and will get you the assistance you need sooner. Other applications for emergency services should be completed by phone. ANSWERING QUESTIONS ABOUT SOCIAL SERVICES
gift tax can’t exceed $15,000, but payments toward someone’s tuition, for any amount, are not taxed. Keep in mind, however, that the money can only go toward tuition, not toward other college expenses like room and board or textbooks. Help them find opportunities to save. Even if you don’t have thousands of dollars to give, you can still help your grandkids look for other opportunities to save. There are thousands of available scholarships, grants, and programs to help students pay for college, and helping them look online and in your community can go a long way. College could be your grandchild’s first stop on the path to achieving their dreams. You can be a part of that journey by making sure money doesn’t get in the way of that.
Once you have completed the applications, you are on the way to getting assistance. Depending on the type of assistance needed, you will be assigned a case manager. Your case manager will be there to help you find additional tools for budgeting and transportation. For budgeting assistance, the Department of Social Services will provide community resources like Literacy for Life or Williamsburg House of Mercy (www.williamsburghouseofmercy.org). Case managers can also assist with budgeting decisions to ensure you are making good long-term choices. Case managers will also work to overcome your transportation barrier. Transportation is a major issue in a lot of areas, but Social Services will provide you with options to lessen the burden. Social Services does have emergency funds available and may be able to help. These funds are extremely limited, come with rules for how often they can be used, and may run out at the end of the fiscal year. Emergency funds are not state funds; they come from directly within the city or county. Social Services can also connect you with other community partners and community services that may provide long- term assistance. The Department of Social Services has much more to offer and is a needed part of the community. If you are in need of assistance, they are ready and willing to help. They are willing to work as hard as you do to ensure you succeed.
2 | GilletteLawGroup.com
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