Use this Additional Estate Planning Tool

This isn't the first time that we've discussed the 529 College Savings vehicle in this newsletter. However, I wanted to reiterate its potential role in estate planning.

With the 2017 tax law changes, we see this educational savings plan being used much more with planners. An individual who contributes to this Plan could pre-load in 1 year, if you will, 5 years of contributions ($75,000 total) without incurring federal gift taxes. The significance of this is that 2 grandparents could put a total of $150,000 into their grandchild's 529 Plan. This action could possible assist in reducing their estate tax burden. Withdrawals of up to $10,000 annually can be used to help fund educational expenses not only in secondary education along but also with K-12 public, private or parochial schools  

Next week will briefly discuss the ABLE account (Acheiving a Better Life Experience account) which can provide for expenses related to disabilities.

Success in all your efforts,


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John R. Kinkead

Vice President of Wealth Advisement