receives annually a check from Parent A and pays the annual premium due. When the minor incurs educational costs, parent B, as the trustee, withdraws money from the cash value of the juvenile insurance policy to pay tuition, room and board, and other permitted costs. Later, funds may be used for ongoing education, maintenance and support. Policy remains in force for the life of the child. In this scenario, neither the child nor the parent ever have “control” or “ownership” of the policy and therefore distributions are excluded from any gift tax or estate tax and will be received at the insured’s income tax rate. The cash value of the juvenile life insurance policy is generally not included in a financial-aid assessment since the policy is owned by the trust, and is not considered as an asset of either the parents or the insured. References Life insurance Children