Maximizing Estate Planning
- Consider leaving a legacy emphasizing education. Know your state’s account maximum, currently in the $269,000-$675,000 range.
- Consider utilizing the 5-year accelerated gifting rule for 529 plans. As stated, up to $95,000 per donor ($190,000 per couple) per beneficiary can be given at one time, then averaged over a 5 year period.
- Alternatively, consider starting early and funding children’s and grandchildren’s accounts up to the state tax deduction or credit each year. Over time, accounts will “superfund” through growth, without GST or estate gift tax problems.
- Consider gifting as much as possible to your children. They can then transfer funds to the next generation without the GST tax concerns.
- Consider transferring ownership of grandchild 529 accounts to your children as you finish contributing.
No statement or example on this site should be considered a specific recommendation for your personal situation. Investing and tax strategies each carry significant risks. Examples herein may not apply to your situation. Please consult your estate attorney, tax advisor, or financial advisor for personal advice.