Help grandchildren with college costs

Description

Abstract: Contributing to a Section 529 college savings program is a great way for grandparents to help their grandchildren pay for college. It is also a great way to remove assets from the grandparent’s estate without paying estate tax. As an added feature, money in a 529 plan owned by a grandparent is not assessed by the federal financial aid formula when qualifying for student aid. This article offers an example of how the gift tax exclusion can reduce the taxability of a 529 plan contribution.