529 Plans as a Gift Tax Strategy for Grandparents

Episode 16 of The College Savings Podcast explores how grandparents can use 529 plans to reduce their taxable estate while funding a child's education. Lucas and Luna break down the annual gift tax exclusion of $18,000 per beneficiary in 2026, and the special five-year front-loading rule that lets a grandparent contribute up to $90,000 in a single year without triggering gift taxes. They walk through a concrete example: a couple contributing $180,000 to a grandchild's 529 in one year, and the IRS Form 709 they'd need to file. They also address the nuance of the five-year election and what happens if the grandparent dies before the full five years have passed. The episode ties this back to state tax deductions where available, and gives listeners a clear sense of when this strategy makes sense — and when it doesn't. #529Plan #GiftTax #EstatePlanning #Grandparent #CollegeSavings #EducationFunding #TaxStrategy #AnnualExclusion #FrontLoading #IRS #Form709 #FexingoBusiness #BusinessPodcast #Finance #WealthManagement #FamilyFinance #TuitionPlanning #TaxSavings Keep every episode free: buymeacoffee.com/fexingo