Grandparent owners open multiple 529 accounts to avoid the $15,000 annual US gift threshold. There is no Gift Tax in my state, New York
Since the US Estate threshold is >$11 million does it make sense for those with expected estates of less than $11 million to have multiple accounts?
Wouldn't a grandparent be just as well served to:
- have one account with the grandparent's spouse as beneficiary and a third party (i.e. adult son) as successor
- at time of distribution set up additional account and beneficiaries as required and file the Form 709.
This also avoids risk if 529 information is ever required on the FAFSA.
Robert Shanebrook
Irondequoit, NY