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.