529 Plans As Part of Estate Planning

Using 529 plans are a popular way for grandparents to invest in the future of their grandchildren. They offer many benefits to your estate as funding them counts as a completed gift to the beneficiary. Therefore, allowing you to take advantage of estate tax exemptions. And a 529 plan also allows you to retain control over the account and its assets.

You may contribute up to $13,000 or $26,000 for married couples per beneficiary per year and this will not incur any federal gift taxes. In addition, there are special rules that will allow you to use five years of annual exclusions all at once. This means a tax-free gift that could amount to $65,000.

You may also own and fund multiple 529 accounts for multiple beneficiaries. And other people may contribute directly to the fund as well.

With graduations approaching and college expenses rising, funding a 529 account to the max could be a great gift and benefit to yourself.

Please contact a professional estate litigation Attorney to find out how a 529 plan could fit into your estate plans.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

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