by Gordon Gaster

There is a new way to save money for college costs -- the "Education IRA." Unlike the Individual Retirement Account (IRA) you may hold now, the Education IRA has nothing to do with retirement. However, the concept is similar.

The Taxpayer Relief Act of 1997, which created the Education IRA starting in 1998. allows eligible individuals to contribute up to $500 each calendar year on behalf of any child under the age of 18. Any earnings will then grow on a tax-deferred basis. When money is taken out of an Education IRA, the distribution is tax-free as long as it does not exceed the child's qualified higher education expenses (including tuition, fees, books, and basic room and board).

How the Education IRA Works

In 1999, single taxpayers with adjusted gross income (AGI) less than $95,000, or couples filing jointly with AGI less than $150,000 are eligible to make the maximum contribution to an Education IRA. The permissible contribution gradually phases out for single taxpayers as their AGI rises from $95,000 to $110,000 and for couples jointly filing as their income rises from $150,000 to $160,000.

Parents may establish an Education IRA for each of their children. Grandparents, other relatives or friends may also establish an Education IRA for a child. In fact, anyone, including the child, who meets the income eligibility requirements may contribute to help a child build a nest egg for college. Keep in mind, however, that $500 per child per year is the maximum aggregate amount that may be contributed for all contributors.

If a child does not need or use the Education IRA for college, the account balance may be rolled over to the Education IRA of certain family members who may use it for their qualified higher education expenses. The child himself or herself may also withdraw funds; however, the portion of the distribution that represents earnings accumulated in the account generally is subject to income taxes. The taxable portion of the withdrawal is also subject to a 10% premature distribution tax penalty, unless an exception applies.

With the rising cost of higher education, now may be the time to look into opening an Education IRA for each of your children or grandchildren.

For free advice on how to begin planning to protect and care for your children contact Gordon Gaster with Morgan Stanley Dean Witter at 1-800-326-4697. He has plans for all income levels.

This article does not constitute tax or legal advice. Investors should consult their tax or legal advisors before making any tax- or legally related investment decisions. This article is published for general informational purposes and is not an offer or solicitation to sell or buy any securities or commodities. Any particular investment should be analyzed based on its terms and risks as they relate to a specific investor's circumstances and objectives.

by Timothy Gaskill, Esq.

Effective October 1, 1999, the Florida Legislature, in all its wisdom and glory, amended Florida Statutes 61.30(1)(a) and 61.30(11)(b) to allow trial judges more discretion when it comes to increasing or decreasing child support obligations. There is no question that the desired objective was achieved but at what cost?

When child support guidelines were first adopted 10 or more years ago, they were hailed as a way to decrease the high cost of litigating over the appropriate amount of support to be paid to the custodial parent. With the guidelines, one would simply determine the parties' combined net monthly income and then go across the chart to the appropriate number of children and there it was. No fuss. No Muss.

Realizing that it was not an exact science, the legislature allowed the judges some discretion (plus or minus 5%) if he or she made specific findings as to why it was justified in a particular case.

Additionally, if a child spent 28 or more consecutive days with the non-custodial parent, the child support for that period could be reduced by 50% if the court, in its discretion, deemed it appropriate.

With the recent amendment, the court's discretion has now been broadened to allow a variance from the guidelines if a child spends "a substantial amount of time with each parent." As a result of this amendment, and the fact that more parents are either working at home or taking advantage of flex time and can spend more time with their children, either as a custodial parent or a non-custodial parent, the exactness of predicting the amount of child support has vanished.

The downside of this problem will be the added cost of arguing over the amount of the variance in each and every case. Until the appellate courts start ruling on these cases and, hopefully establishing some parameters, each case will have to be decided on its own special formula.

The standard visitation schedule used in Palm Beach County contemplates that a non-custodial parent will have visitation every other weekend and one day during the week for a few hours. If this is the schedule adopted or used in a particular case, a variance will, in all likelihood, not be granted.

However, if instead of every other weekend the parties agree that the visitation would be every weekend, then a variance could be considered, since it means the non-custodial parent would be spending "a substantial amount of time" with the children that was originally contemplated by the child support guidelines.

Likewise, if the non-custodial parent keeps the children the entire summer rather than the contemplated six weeks, the variance would be in order. If the visitation schedule causes the children to be with the non-custodial parent more than 50% of the time, either on an hourly or daily basis, a variance should be granted.

If the non-custodial parent provides more than 50% of the meals or spends extra time transporting the children to and from school, or extracurricular events, then a variance would be appropriate.

There are probably many more situations that would justify a variance, but unfortunately, they will have to be handled on a case-by-case basis which may require the parents to weigh the amount of savings against the litigation costs to obtain same. The amendment applies to a variance for an increase as well so that the custodial parent can seek an increase if he or she is spending substantially more time with the children than was originally planned.

Hopefully, in the next six to twelve months, the appellate courts will give us some criteria for granting a variance.

Timothy W. Gaskill is a partner in the law firm of DeSantis, Gaskill, Smith & Shenkman, P.A., located at 11281 U.S. Highway One, North Palm Beach, Florida. Mr. Gaskill is a Board Certified Trial Attorney and may be reached at 561-622-2700.

By Bill Ferguson

by Candy Waring

Parents, you are your child's first and most influential teacher. you have more impact on your child's attitude toward learning than any other person on the planet.

It's a responsibility that's not to be taken lightly. Studies show that how a parent talks about and acts toward school has a direct impact on the child's performance.

In Ms. Cleveland's kindergarten class, for instance, Adam comes into class so excited with a new fact each day. He and his mom go the the library a couple of times a month and check out books on one theme. Adam then brings in one or more of the books and enthusiastically tells spellbinding stories about rocks or trains or dinosaurs. This type of enthusiasm for learning increases Adam's skills and ability to grasp new concepts.

His mother's involvement and willingness to participate in Adam's education, directly affects Adam's positive progression in school.

Your enthusiasm and involvement affect your child. you don't have to be a rocket scientist to be involved. All you have to do is be there to encourage, praise, participate and smile.

Your example shouts at your child without saying a word. Imagine what thirty minutes a day could do. Here are some simple ways in which to encourage your child to excel in school.

• Go to the library together
• Turn off the TV
• Go to the grocery store together; have your child read the list and find specific items; total the cost
• Read together for 15 minutes a day
• Discuss the school day
• Volunteer for a school event; mentor a student
• Praise your child's effort, not the grade achieved
• Display important work on the refrigerator
• Look at your child's school work; discuss what was learned

Most of these suggestions take less than 30 minutes. It's well worth the time and energy to help your child succeed in school and life.

Candy Waring is a Florida Certified elementary teacher who has witnessed the pain of divorce through the eyes of her students for the past 15 years.

Leslie began teaching Parents, Children and Divorce in Palm Beach County in 1993 and feels a strong commitment to preserving a healthy family unit. Her background uniquely suits her for assisting moms and dads to support their children through divorce. She is a licensed Mental Health Counselor and Certified Addictions Professional. She specializes in adult psychotherapy, with an emphasis on divorce recovery, women's issues, couples counseling, depression, and healing the pains of loss and post traumatic stress.

Her office is located at 1525 North Flagler Drive, #3, West Palm Beach, FL She can be contacted at 561-659-5170