There is an underutilized section of the IRS code which entitles small business owners, professionals, doctors, lawyers and corporate executives to tax deductions which can fund educational expenses. The plans under this code section are totally selective and completely discriminatory. Owners can choose themselves only and/or key employees; the participants can make tax-free withdrawals for educational benefits. The plans are creditor proof (important in our litigious society). The trust used for educational purposes employs an insurance contract tailored to this market. This contract was previously only available to large corporate clients; it is now available to small business owners in these plans. Insurance is used as a funding vehicle because these trusts would otherwise be taxable. A properly designed and implemented insurance contract renders all the benefits nontaxable. This article is centered on the Living Benefits Trust, emphasizing educational needs. The trust (L.B.T.) can also provide benefits for long term care, disability/accident, and reimbursement of insured medical expenses, deductibles and co-insurance payments. There are two other distinct trusts available for use in estate planning and buy/sell purposes. For families who are eligible, these plans can greatly reduce their tax burden. We are happy to assist you with plan design and qualification issues.