529s Can Be Estate Planning Vehicle
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Thursday, August 20, 2020
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Another important benefit is the potential use of 529 accounts for gifting and estate planning.
Key Points:
- Another important benefit is the potential use of 529 accounts for gifting and estate planning.
- A donor can gift up to $15,000 annually per 529 beneficiary free of federal estate and gift tax impact if no other gifts to the recipient are given that year.
- If the donor dies before the five years are up, a prorated portion of the contribution will be considered part of the donors taxable estate.
- Its a great vehicle for lightening the estate tax load on your loved ones, while supporting future generations by providing funding for their college education.