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A Closer Look at Estate Planning Benefits of 529 Plans
Take a Closer Look at the Estate Planning Benefits of 529 Plans
Do you have clients with estate planning needs? You may want to suggest that they consider using a 529 plan.
The Scholars Choice 529 Plan will not only offer your clients the ability to give loved ones the means to pursue their education, it also gives the investor flexibility and significant estate tax advantages. A contribution to a 529 plan is considered a completed gift, yet the account owner maintains complete control of the assets, with the ability to fully or partially liquidate the account for any reason, at any time — say, if one faces unforeseen expenses, such as medical bills or declines in retirement savings balance.1
Reduce Taxable Estate, Without Giving Up Control
By choosing to place their money, up to $30,000/beneficiary each year, in a 529 plan — versus, for example, an irrevocable trust — the investor is able to make a completed gift, but still retain control of the assets. Review our Estate Planning investment idea for more detail.
Accelerate Contributions, Multiply Tax Benefits
In a single year, investors are allowed to contribute 5x the annual gift tax exclusion (up to $150,0002) per beneficiary — without any federal gift tax consequences. That can significantly reduce their taxable estate, while boosting the investment earnings through tax-deferred compounding. Review our Accelerated Gifting investment idea for more details.
Maximize Gifting Limits, Make 6 (years of gifts) in 2 (months)
Learn how investors can maximize their year-end gifting by taking advantage of six years of annual gift tax exclusions in two months. Review our “6-in-2” investment idea for more details.
Maximum Gift Tax Exclusion
This example assumes the client has made no other gifts to the Beneficiary this year (2018), and wishes to take full advantage of a) the 2018 annual gift tax exclusion ($15,000 for individuals; $30,000 for joint filers), and b) the “Accelerated Gifting” provision (up to $75,000 for individuals; $150,000 for joint filers).