529 Plan
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs, offering flexibility and tax benefits.
How can a 529 plan be integrated into an estate planning strategy?
A 529 plan can be a valuable component of an estate plan, providing grandparents and parents a tax-advantaged way to fund future educational expenses while reducing taxable estate size. Contributions up to $17,000 per year (or $85,000 if using five-year averaging) can be made without incurring gift taxes. Additionally, 529 plans allow the account owner to retain control over the funds, which can be beneficial for estate planning flexibility. Incorporating a 529 plan into your estate planning strategy may help reduce estate taxes while ensuring educational support for future generations.
