tuition

One of the most commonly discussed issues when it comes to planning for college is how families will pay tuition. The U.S. News & World Report has found that the average annual tuition and fees at colleges from 2020 to 2021 was $21,184 for out-of-state public colleges and $35,087 for private colleges. Due to these substantial costs, it is understandable that some people decide to make paying for college part of their estate plans. Some people decide to pay for college by contributing to 529 plans. These plans often prove financially advantageous because money contributed to them grows tax-free, provided these assets are used for qualified education expenses. Limits exist, however, to the amount that can be set aside for each beneficiary. To better prepare you for utilizing a 529 plan as part of your estate planning strategy, the following reviews some crucial details about these plans. 529 Plans Can Reduce Your Taxable Estate Contributions to 529 plans are viewed as completed gifts from a donor to a beneficiary. Many times, the donor also holds the account and manages funds for the beneficiary. Later, when the account owner passes away, the account is often not included in the deceased individual’s [...]