CASE STUDY #5:

How knowing the details of investments and taxes can make the difference.

My married client was a successful owner of a private company and wanted to provide for the college education of their three children.  They were about to fund three Section 529 College Savings Plans using their annual gift tax exclusion of $13,000 when they mentioned this to me.  I educated them on Section 529 College Savings Plans and, in particular, the special tax provision which allows parents to fund 5-year’s worth of annual gift tax exclusions at one time.  Instead of putting away $39,000 for their children’s educations, they were able to put away $390,000.

Legal Disclosure:  For more information about any Section 529 College Savings Plan contact the individual state’s plan provider in order to obtain a copy of the Program Description which includes investment objectives, risks, expenses and other information.  Read and consider the Program Description carefully before investing.  If you are not a taxpayer of the state offering the plan, consider whether your home state or the home state of the designated plan beneficiary offers any state tax benefits before investing.