529 plans are an excellent tool to help save for education expenses, but are families taking advantage of all the benefits these college savings plans have to offer? Nearly two-thirds of 529 accounts are not fully capitalizing on the potential benefits due to the numerous differences in each states’ plan. Many of these accounts are expected to lose 9% of their after-tax value over 18 years, the age at which most students enroll in college.
Jonathan Thomas, CFP®, Private Wealth Advisor at LVW Advisors, likes to consider 529 plans in estate planning because 529 contributions moves money out of a donor’s taxable estate, which is “particularly advantageous for grandparents with substantial assets who have multiple children and grandchildren”.
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