After much time spent reading through many many threads re: 529s and, specifically, grandparent owned accounts, we are still uncertain if we can or should do what we want to do. Please help if you can. Thank you if so.
We opened a Vanguard 529 plan account with the $3K minimum as a gift to our grandchild on her first birthday. It is owned by our Joint Revocable Trust and our grandchild is the beneficiary. We have made modest, but regular contributions since then and the balance is now >$22K. She is now 18 and will start college in the fall. Her parents report that FAFSA is not a concern as she does not qualify. We would like to give her ownership of the account by transferring it from us (our trust) to her. We intend to continue making contributions as long as she's in school.
Our questions are: 1) does this make sense or are we missing something? and 2) since the account is owned by our trust, we assume we can only exclude 1*$18K from the gift tax vs. splitting it between the two of us to cover the entire $22K. Is that correct and if so, are there other things we can do to enable splitting the gift?
Thank you for any help or advice. We need it!![:shock:]( "Shocked")
We opened a Vanguard 529 plan account with the $3K minimum as a gift to our grandchild on her first birthday. It is owned by our Joint Revocable Trust and our grandchild is the beneficiary. We have made modest, but regular contributions since then and the balance is now >$22K. She is now 18 and will start college in the fall. Her parents report that FAFSA is not a concern as she does not qualify. We would like to give her ownership of the account by transferring it from us (our trust) to her. We intend to continue making contributions as long as she's in school.
Our questions are: 1) does this make sense or are we missing something? and 2) since the account is owned by our trust, we assume we can only exclude 1*$18K from the gift tax vs. splitting it between the two of us to cover the entire $22K. Is that correct and if so, are there other things we can do to enable splitting the gift?
Thank you for any help or advice. We need it!
Statistics: Posted by WeMigr8 — Wed Jun 05, 2024 6:33 pm — Replies 0 — Views 67