Education Planning

529 Plan-It is an education savings plan sponsored by the state. The account grows tax deferred, plus qualified withdrawals for education are tax free. it is an included asset however, so it will reduce financial aid. 

IGIP 7702-It is a tax advantaged life insurance policy, it's not an individual type life insurance policy, it is a standalone cash value life insurance policy. The cash value grows tax deferred and policyholders can take out tax free policy loans. It's an excluded asset so it won't reduce financial aid either.

UGMA(Uniform Gifts to Minors Act)-UGMAs allow you to transfer financial assets to a minor without a gift tax, up to a certain amount. There is no need to establish a trust fund if there is a UGMA account. The account is managed by an adult custodian until the minor comes of age. The earnings are not tax sheltered but are taxed at a "kiddie" rate, up to a certain amount. Buying on margin and derivatives aren't allowed, only securities. There are no contribution or income limit, and the deposits are irrevocable. The contributions are after tax dollars, so there is no deduction.  

UTMA(Uniform Transfers to Minors Act)-This is essentially the same as a UGMA, the only difference is that it can contain any asset, it's not limited to financial assets. Art, real estate, and intellectual property are all eligible. Both types affect financial aid however, so they're not for everyone. Gifts are tax exempt up to $16000.