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College Savings Plan as an Estate Planning

Article by Art Franks

The 529 College Savings Plan as an Estate Planning Move

Let’s take a brief look at the 529-college savings plan as an estate-planning move. A 529 plan is not merely just a great vehicle to fund your child or grandchild’s future. A 529 plan is an excellent tool to remove money from your taxable estate. This will assist you in lowering your tax liability and keeping intact more of your estate for your loved ones once you pass.

All 50 states and the District of Columbia now offer some type of 529 savings plans. A 529 plan is a state sponsored savings plan that invests money on behalf of beneficiaries. The earnings are tax deferred from federal income tax and most states have programs that will defer state taxes. If your beneficiary uses the money from this fund for any qualified education purpose, the withdrawals will be free of tax.

There is a lot of competition between states that has lead to very large contribution limits. This is good news for you as you plan your estate. 529′s have extremely simple investment options- age based and individual portfolios. Basically, these college savings plans afford the family the ability to transfer wealth from generation to generation, free of income, estate and gift taxation.

So what makes a 529 college savings plan so attractive to an estate planner? They do not have any income limits unlike the educational IRAs. Almost everyone can qualify for a 529. And if you’re looking for a way to reduce your estate tax bill, this is a great solution. Take advantage of ,000 in annual tax-free gift contributions. If you’re married that means you can contribute up to ,000 for each beneficiary in one year. This is free from federal gift tax penalties. It is advisable to look into your state laws on gift planning for 529′s as they vary.

If you need to reduce the size of your estate you could contribute up to ,000 (five years worth of gifts) in year one of a five-year period. Or if you’re married you can contribute up to 0,000. This is a good resource to transfer wealth by reducing the size of your estate and do away with estate taxes.

The account owner is always in charge of the plan’s assets. Even though the monies added are considered gifts, the owner does keep control. The donors can even take back the money for themselves or transfer the account to another beneficiary. If the owner of a 529 account were to die, the value of the account would not be counted in the estate. The account value would be in the beneficiary’s estate. The exception to this would be if you had made the 5-year election and passed before the 5 years was over. Then, the part of the contribution that was assigned to the years after your death would be included in your federal gross estate.

It is also very easy to move the money in an account through 529 rollovers or by changing your beneficiary. If you have a need to distribute your estate, you can set up 529 plans for a large array of family members. This includes children, siblings, grandchildren, uncles, aunts, stepfamily, cousins and so forth.

If you need to transfer wealth, look into 529 plans as part of your estate planning strategy. At the very least, the 529 college savings plan, as an estate-planning move is something to discuss in more depth with your tax professional. This is an extremely generous gift for your beneficiary. Imagine the reward of knowing you’ve provided someone with the gift of an education.

Little Rock AR Estate Planning Attorney Wayne Ball on Estate Planning… www.ball-stuart.com There are many legal strategies involved in estate planning, including wills, revocable living trusts, irrevocable trusts, durable powers of attorney, and health care documents. New clients often say that they do not have an estate plan. Most people are surprised to learn that they actually do have a plan. In the absence of legal planning otherwise, their estate will be distributed after death according to Arkansas’s laws of intestacy. Of course, this may not be the plan they would have chosen. A properly drafted estate plan will replace the terms of the State’s estate plan with your own. For more information on Estate Planning please visit this page… www.ball-stuart.com To schedule a consultation from our website then please visit this page… www.ball-stuart.com
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The American Society of Appraisers and Purchase College SUNY Present 2012 Summer Appraisal Camp

Reston, VA (PRWEB) November 07, 2011

The American Society of Appraisers (ASA) and Purchase College, State University of New York are proudly offering 2012 Summer Appraisal Camp, June 4-18, 2012 at Purchase College, nestled in the rolling hills of New York. Located on a stunning campus above New York City, Summer Appraisal Camp is an accelerated, intense two-week program of appraiser education designed to give you all the essential valuation skills needed to be an appraiser of personal property.

Summer Appraisal Camp offers the four required courses taught through lectures, optional field trips, hands on exercises, and the use of the College’s Neuberger Museum of Art, among the 10 largest university museums in the country. At Summer Appraisal Camp you will learn theory and its application and skills necessary to value and evaluate a wide range of items with assurance and competence.

This rigorous program contains all courses that ASA designated appraisers must complete, making them the most qualified in the profession for appraisal assignments. Assignments include insurance coverage, damage and loss claims, estates and estate planning, non-cash charitable contributions, division of property, and sale and purchase of property.

All courses are taught by experienced instructors who are Accredited Senior Appraisers. The courses in the program fill the education qualification towards membership and accreditation in ASA. Take courses individually or earn your Appraisal Studies Certificate from SUNY Purchase by completing the university requirements. Students who successfully complete four required courses are awarded an Appraisal Studies Certificate by Purchase College and, complete the 120 education hour requirement of The Appraisal Foundation. Accredited appraisers taking the courses earn continuing education hours toward reaccreditation.

The Intensive Principles of Value Program (Appraisal Studies Certificate)

June 4-7

Money talk for women at Goucher College (Baltimore Sun)

The Baltimore County Commission for Women will hold a free Money Conference for Women from 8:30 a.m. to 3:30 p.m.

The Baltimore County Commission for Women will hold a free Money Conference for Women from 8:30 a.m. to 3:30 p.m. Saturday at Goucher College. Topics will include how to get out of debt, money management, personal finance, retirement planning and investment strategies. Madeleine Green, a former University of Maryland, College Park professor, will be the keynote speaker. Information: 410-887-0000.