Grandparent Education Trust Calculator

Plan education funding from grandparents with contributions, growth, tax drag, and downside assumptions.

Grandparent education trust design

Compare direct gift, two-stage gift, education-payment exemption, and trust strategy with the Korean gift-tax strategy engine.

Best strategy

Education trust strategy

Best total cost

₩34,386,000

11.5%

Savings versus direct gift

₩23,620,000

Direct gift cost

₩58,006,000

Education-cost exempt amount

₩40,000,000

Total education cost

₩72,000,000

Preserves Korean generation-skipping surcharge, minor/adult grandchild deductions, education-payment exemption, trust fee, and 3% self-filing credit logic. This English finance calculator calls the Korean feature lib for its numeric result. KRW inputs and outputs replace the old generic USD projection stub for this batch.

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Grandparent education trust design calculator

This English guide translates the Korean grandparent-to-grandchild education funding and trust design page. The calculator calls calculateAllStrategies and compares direct gift, two-generation split gift, education-cost exemption, and trust planning.

Generation-skipping gift risk

A direct gift from grandparent to grandchild usually skips the parent generation and can add a 30% surcharge to calculated gift tax. If the grandchild is a minor and receives more than KRW 2 billion, the surcharge can be 40%.

The Korean example for a KRW 100 million direct gift to an adult grandchild applies a KRW 50 million deduction, KRW 50 million taxable base, 10% basic tax, 30% generation-skipping surcharge, and 3% filing credit.

Four strategies compared

Strategy A is a direct gift. Strategy B first gifts from grandparent to parent and then from parent to grandchild, avoiding the surcharge but creating two taxable transfers. Strategy C pays qualifying tuition directly to the school as education expense before gifting any remainder.

Strategy D uses an education trust or gift trust. The Korean content notes annual trust fees around 0.3% to 1.0%, potential investment return, and gift taxation on any education-trust balance remaining when the beneficiary turns 30.

Deductions and use cases

The Korean deduction table keeps KRW 600 million for spouse, KRW 50 million for adult lineal relatives, KRW 20 million for minors, and KRW 10 million for other relatives over a 10-year aggregation period. Multiple grandchildren can each use their own recipient-side deduction.

Education-cost exemption generally requires real education expenses such as tuition or school fees paid for the student, not broad living expenses. The calculator is most useful for comparing tax, trust fees, and after-tax education support across grandchildren.