This Week's Topic: College Savings Plans

How can you give away $55,000 this year for the benefit of each person you wish to assist with their college education without the gift reducing your $1 million exemption? Establish a State College Savings Plan, commonly called a 529 Plan. You do not get a deduction for establishing the plan for your children and or grand-children, but you can make a big dent in your net worth very swiftly if there is a need to do it or to just shift income to a tax-free entity.

The donor can select the type of mutual funds she/he desires so that the fund will grow in sufficiently in time to pay for the person