The December 2012 issue of Financial Planning featured an article about funding a 529 college savings plan for grandchildren which can offer estate tax benefits for grandparents plus feel-good rewards.
Grandparent owned 529 accounts offer distinct advantages. Grandparents concerned about estate taxes can move large sums from their estate, tax-free. They can help trim college costs for their progeny. And there’s security knowing that money in 529 plans can be redeemed, if necessary, often with a modest tax bill.
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