Got a kid or grandchild headed to college....sooner or later? December is a great time to set up and contribute to a 529 plan, to take advantage of this year's annual gift exclusion amount. 529 plans are an efficient and cost effective way for parents and other family members to help pay for accredited post-secondary educational expenses. "529" is a reference to the Internal Revenue Code section setting out the terms and conditions for qualified tuition plans. All 50 states and the District of Columbia, as well as many state educational institutions, provide or spo nsor 529 plans where income earned on assets are not subject to federal income tax and may not be subject to state income tax if ultimately used for qualified educational expenses.
The holiday season is upon us. For many, that means hitting the mall the day after Thanksgiving in search of the perfect gift. An often overlooked area for gifts? Your own estate.