Estate Planning Benefits
Gifting benefits to help you leave your legacy and potentially reduce estate taxes.
There’s no greater gift than the gift of knowledge. And with a 529 plan, you can help contribute to a loved one’s educational expenses and enjoy special benefits designed to help you remove significant assets from your federal taxable estate without paying federal estate taxes or relinquishing control of those assets.
You may be able to make five years of contributions at once — up to $60,000 per beneficiary without incurring a federal gift tax, or $120,000 per beneficiary if married and filing jointly1, and as the account holder you maintain control.
1 The donor must elect that the gift be treated as having occurred over a five-year period in order for it to qualify for the federal gift tax exclusion. If additional gifts are made to the same beneficiary during this five-year period, a federal gift tax may apply. If the donor dies within this five-year period, a pro rata share will be included in the donor’s estate for federal estate tax purposes. State gift and estate tax laws may vary.