Saving for college is also good for your estate plan

Description

Abstract: A 529 plan is one of the most powerful and flexible tools available for college savings, but it also provides some unique estate planning benefits. This article explains how 529 plans work for savings purposes, but also notes that all contributions, together with all future earnings, are removed from one’s taxable estate even though the donor retains control over the funds. But there are some disadvantages, so a sidebar discusses another savings option: the Coverdell ESA.