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Bottom Line – Your Money
April 1, 2004
Gifts to graduate school students can be turned into loans. Parents can take a home-equity line on their primary residence and use the money to help a child in graduate school. The money can be lent on an interest-only basis with no time limit. After graduation, the child can start paying back the loan or the parents can forgive the loan and make it a taxable gift that will be offset by their unified lifetime credit. More information: Consult your financial adviser.
Patrick J. Horan, CFP, ChFC, managing partner, Horan & Associates Financial Advisors, Ltd., Towson, Maryland.
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