Dawn Brown is a senior financial analyst at Alfest Personal Wealth Management, New York, NY.


Discussion

Steve from GA posted over 4 years ago:

Good article that concisely covers the major considerations of grandparent helping with grandchildrens' college expenses.


C from IN posted over 4 years ago:

Helpful info; however, where can I acquire stock info for a new grandson--knowing 80% allocation in stocks but what stocks? Is ther a model portfolio available for newborn?


Peggy from MN posted over 2 years ago:

I read an article once that suggested the best way for grandparents to help, so that it wouldn't jeopardize getting financial aid, was to wait until after graduation, and then help pay off the student loans. That seems like a good idea to me, but it wasn't mentioned here.


David from PA posted over 2 years ago:

The article advanced my knowledge of the subject somewhat; but many questions remain: where do you go to get the details of a 529 plan? Your bank? Your state? where? Does PA have a good plan, or are there states with better plans? Which states? And on and on.


J from CA posted over 2 years ago:

And what about uncles, aunts, or non-relatives who want to contibute to a child's 529 plan?


Hank from NY posted over 2 years ago:

Ms Brown writes "Unless the total amount given to any one person in any one year exceeds what is called the annual exclusion (currently $13,000 for single tax filers and $26,000 for married joint filers who choose to split the gift), it does not count as a taxable gift or require a gift tax return to be filed. Furthermore, under current law, each individual can make up to $1 million in total taxable gifts in his or her lifetime before paying gift taxes. Any amounts over $1 million are currently subject to tax at a rate of 35%."
I believe the correct wording might be that "each individual may make $1 million in total gifts in excess of the $13,000 per individual before paying gift taxes."


Terry from TN posted over 2 years ago:

Can ownership of Coverdell accounts be transferred from grandparent to parent of the beneficiary?


Charles from IL posted over 2 years ago:

Terry, I would check with a tax professional or a college finance expert. The accounts can be rolled over into a new account, but I'm not sure about the grandparent to parent transfer. -Charles Rotblut


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