Does the InvestEd Plan offer estate-planning benefits?
Contributions to the InvestEd Plan can generally be excluded from your taxable estate because the government considers them as completed gifts for federal gift and estate tax purposes. Contributors can gift up to $60,000 (or $120,000 per couple) without gift tax consequences if an election is made by the contributor to treat the gift as having been made over a five-year period. If the election is made, gifts made by you to the beneficiary during the five-year period may not exceed $60,000 without federal gift tax consequences. To qualify, you will need to file IRS Form 709 to treat the gift as if it were made in equal payments over five years. In addition, if the contributor dies before the end of the five-year period, the portion of the gift allocable to the years remaining in the five-year period would be included in the contributor’s estate for estate tax purposes. The availability of tax or other benefits may be conditioned on meeting certain requirements, such as residency or purp
