Can 529 plans provide estate or gift tax benefits?
The plan is an excellent estate planning tool. You can significantly reduce the value of your taxable estate by funding a 529 plan. In 2008, you could have contributed up to $60,000 ($120,000 for married couples) for your beneficiary immediately without incurring a federal gift tax. In 2009, you can contribute up to $65,000 ($130,000 for married couples). Also, unlike many other kinds of gifts, you can retain control over your gifted assets.
The plan is an excellent estate planning tool. You can significantly reduce the value of your taxable estate by funding a 529 plan. In 2010, you can contribute up to $60,000 ($120,000 for married couples) for your beneficiary immediately without incurring a federal gift tax. Also, unlike many other kinds of gifts, you can retain control over your gifted assets.
The plan is an excellent estate planning tool. You can significantly reduce the value of your taxable estate by funding a 529 plan. In 2011, you can contribute up to $65,000 ($130,000 for married couples) for your beneficiary immediately without incurring a federal gift tax. Also, unlike many other kinds of gifts, you can retain control over your gifted assets.
