College Planning, Family Dynasty 529 PlanThe College Savings 529 plan offers a way for modest-income families to save and invest for college expenses for their children as early as birth up to college age. When invested 529 funds are used to pay for the beneficiary’s qualifying education costs, earnings are distributed tax-free.

However, a lesser-known advantage for wealthier families is that the 529 plan can be used as an effective tax-advantaged tool for funding college expenses for family members over multiple generations. Basically, the 529 enables the investment to continue growing tax-free for years and even decades after the death of the original owner and beneficiary.

Assets from a 529 account may be used to pay for expenses associated with higher education, including tuition, fees, books, room, and board. The 529 also can be used to pay up to $10,000 a year in tuition expenses for K-12 education and a lifetime total of up to $10,000 in student loan repayments.

No Age or Use Restrictions

The two key components to this planning strategy, referred to a Family Dynasty 529 plan, are that the beneficiary can be changed at any time and that there is no time frame during which all assets must be distributed (including no required minimum distributions).

Note that the selection of a 529 beneficiary is rather broad:

  •        Account owner (self)
  •        Spouse
  •        Child
  •        Spouse of a child
  •        Brother, sister, stepbrother, stepsister or their spouse
  •        Mother, father, the ancestor of either or their spouse
  •        Stepfather, stepmother or the spouse of either such person
  •        Nephew, niece or their spouse
  •        Aunt, uncle or their spouse
  •        Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, sister-in-law or their spouse
  •        First cousin

While the 529 can have only one named beneficiary at a time, the beneficiary can be changed at any time (such as once a student graduates), leaving the remaining funds for the next beneficiary.

No Contribution Limit

Unlike federal tax filings, many states offer a limited tax deduction on annual 529 contributions. Note that there is no limit to the amount that can be contributed to a 529 account each year. However, there is a limit to how much can be contributed to each 529 account in total, and that amount differs by state, with the range falling between $235,000 and $529,000. Georgia and Mississippi are the lowest at $235,000, and California features the highest limit at $529,000 (note that a California account can be opened no matter where the owner or beneficiary lives). Moreover, there is no limit to how much invested tax-free 529 assets can grow.

One strategy is to fund a family dynasty 529 with the maximum limit in one lump sum. The idea here is that one lump sum invested for tax-free growth offers the potential to fund college education expenses for a vast number of extended family members over several generations. Each time a beneficiary graduates, a new beneficiary is named. If there are multiple students scheduled to attend college at the same time, multiple 529 accounts can be opened with separate beneficiaries.

Changing Owner for Dynasty Plan to Continue

It is likely that when funding over several generations, the original 529 account owner will pass away. A few plans permit change of ownership only in the event of the death or incapacity of the current owner, but most 529 plans allow the change in ownership at any time, as long as the owner has reached the age of majority for that state’s plan. By periodically changing both owners and beneficiaries of the account, the family dynasty 529 can continue to grow and pay for qualified education expenses indefinitely.

The 529 also may be structured so that the account owner is a trust, which makes it unnecessary to change owners as they pass away. A trust can help protect 529 funds from creditors and may contain language mandating that assets can be used only for higher education – thus eliminating the potential for a beneficiary to drain the account with non-qualified withdrawals.

Potential Gift/GST Tax Consequences

Be aware that some state 529 plans may treat a change in ownership as a distributable event and will issue Form 1099 for tax purposes. Also note that when a new 529 plan beneficiary is one or more generations below the most recent beneficiary, distributed assets beyond the annual gift tax exemption ($17,000 for 2023) may be subject to the gift tax. In this scenario, should excess amounts exceed the lifetime gift tax exemption ($12.92 million for 2023), distributions may be subject to an additional generation-skipping transfer tax (GST).

The Family Dynasty 529 plan is best optimized when started early, such as the birth of the first child, and overfunded to the maximum limit. This allows for the best growth opportunity, wherein college expenses may be funded using tax-free earnings, leaving the principal available to grow for the next student beneficiary. Better yet, parents or grandparents can retain control of the account to ensure it is used only for college funding over multiple generations.


101 Comments

WonderFix Glycogen Pills · December 31, 2023 at 2:43 pm

Hi there to all, for the reason that I am genuinely keen of reading this website’s post to be updated on a regular basis. It carries pleasant stuff.

Tree Mail · January 2, 2024 at 4:27 am

hiI like your writing so much share we be in contact more approximately your article on AOL I need a specialist in this area to resolve my problem Maybe that is you Looking ahead to see you

alpilean side effects · January 3, 2024 at 8:45 am

Just wish to say your article is as surprising The clearness in your post is just cool and i could assume youre an expert on this subject Fine with your permission allow me to grab your RSS feed to keep updated with forthcoming post Thanks a million and please keep up the enjoyable work

True Form Keto Weight loss Gummies · January 5, 2024 at 12:45 am

I do not even know how I ended up here but I thought this post was great I dont know who you are but definitely youre going to a famous blogger if you arent already Cheers

Puravive ice hack review · January 7, 2024 at 10:05 am

Thank you for the good writeup It in fact was a amusement account it Look advanced to far added agreeable from you However how could we communicate

Temp Mail · January 21, 2024 at 11:13 pm

I loved even more than you will get done right here. The picture is nice, and your writing is stylish, but you seem to be rushing through it, and I think you should give it again soon. I’ll probably do that again and again if you protect this hike.

puravive supplements · January 28, 2024 at 9:03 pm

I loved even more than you could possibly be able to accomplish right here. The picture is beautiful, and your language is elegant; yet, it appears that you are rushing through it, and I believe that you ought to give it another shot in the near future. That is something that I will most likely do again and again if you protect this hike.

Guy Obryan · February 6, 2024 at 11:23 am

Outstanding feature

doorhandless · February 7, 2024 at 2:03 pm

I was recommended this website by my cousin I am not sure whether this post is written by him as nobody else know such detailed about my difficulty You are wonderful Thanks

Glucorelief · February 10, 2024 at 1:24 pm

I do believe all the ideas youve presented for your post They are really convincing and will certainly work Nonetheless the posts are too short for novices May just you please lengthen them a little from subsequent time Thanks for the post

Gluco Relief scam · February 13, 2024 at 11:30 am

This is really interesting, You’re a very skilled blogger. I’ve joined your feed and look forward to seeking more of your magnificent post. Also, I’ve shared your site in my social networks!

Sfexrm · March 12, 2024 at 6:34 pm

atorvastatin 80mg over the counter buy lipitor paypal order lipitor 40mg pills

Ekhtxj · March 14, 2024 at 5:13 am

ciprofloxacin 1000mg generic – cost ethambutol augmentin uk

Osixwa · March 15, 2024 at 12:49 am

purchase ciprofloxacin without prescription – cephalexin 500mg cost augmentin 625mg over the counter

Lmqhck · March 17, 2024 at 12:42 am

order metronidazole online – cefaclor 250mg uk zithromax 500mg ca

Ufyfis · March 18, 2024 at 9:39 am

buy ciplox 500 mg generic – amoxicillin buy online
order erythromycin 250mg online

Lfjxfz · March 19, 2024 at 5:27 am

valacyclovir without prescription – nemasole for sale online acyclovir 400mg cost

www.sekret-natury.pl · March 20, 2024 at 2:46 am

Excellent write-up

Iepjwc · March 20, 2024 at 1:07 pm

ivermectin 3mg stromectol – buy generic aczone for sale cheap tetracycline 250mg

Zgpvpi · March 21, 2024 at 10:46 am

flagyl 400mg cheap – purchase amoxil pills zithromax 250mg without prescription

Mharzj · March 22, 2024 at 3:41 pm

buy ampicillin sale cheap amoxicillin online purchase amoxicillin generic

Atehzs · March 22, 2024 at 10:54 pm

purchase lasix for sale – cost furosemide 40mg capoten 25 mg cost

Txdref · March 26, 2024 at 4:38 am

order retrovir 300 mg pills – epivir medication order allopurinol 300mg online cheap

Tiamwt · March 26, 2024 at 8:47 am

buy glucophage online cheap – cefadroxil 250mg tablet lincocin 500mg us

Vkzhnv · March 28, 2024 at 7:15 pm

clozapine without prescription – pepcid 20mg us pepcid brand

Szvomg · March 29, 2024 at 3:48 am

buy quetiapine 100mg sale – order bupropion generic order eskalith online cheap

Usbwmp · March 31, 2024 at 4:36 am

atarax 25mg generic – escitalopram tablet order amitriptyline online cheap

Qqbxuh · March 31, 2024 at 1:30 pm

purchase clomipramine for sale – buy paxil 20mg online cheap buy doxepin medication

Yezxyt · April 4, 2024 at 3:23 pm

buy augmentin 625mg without prescription – buy generic acillin purchase baycip generic

Odkryj jak · April 5, 2024 at 11:06 pm

great article

Pvysct · April 9, 2024 at 3:23 am

brand cleocin – purchase chloromycetin buy chloromycetin tablets

Lbudge · April 10, 2024 at 3:17 pm

cheap zithromax 250mg – order generic azithromycin 250mg ciprofloxacin 500mg price

Clickmen™ - Top Web Design Agency in USA & Canada · April 11, 2024 at 5:18 pm

I appreciate your excellent writeup. It was truly enjoyable to read and I look forward to more engaging content from you! That said, I’m curious about how we can stay in touch and communicate further. By the way I am a Senior Researcher @ Clickmen™ ~ SEO Experts & Backlink Building Web Design Agency in USA & Canada.

Sukzcq · April 12, 2024 at 6:30 pm

best allergy for runny nose – order advair diskus inhalator sale purchase theo-24 Cr pills

Vrqvbh · April 13, 2024 at 8:15 am

buy ivermectin – cefaclor for sale cefaclor 500mg for sale

Engtvq · April 15, 2024 at 3:33 am

buy desloratadine paypal – order generic albuterol albuterol order online

Xpuebx · April 16, 2024 at 9:22 am

medrol tablet – loratadine brand order generic astelin 10 ml

Slxpbs · April 17, 2024 at 4:31 am

buy micronase online cheap – buy generic glyburide online buy forxiga 10mg online cheap

Uoqvkv · April 19, 2024 at 4:31 am

repaglinide 1mg usa – order jardiance 25mg generic jardiance usa

Udhnts · April 20, 2024 at 1:23 pm

order glucophage 1000mg – cost januvia 100 mg buy acarbose online

Korvcj · April 21, 2024 at 9:51 pm

brand lamisil – order griseofulvin generic griseofulvin for sale online

Hlnzmr · April 23, 2024 at 11:56 am

rybelsus online – glucovance price where to buy desmopressin without a prescription

Joxtry · April 24, 2024 at 1:00 am

cheap nizoral 200mg – buy cheap lotrisone buy generic sporanox 100mg

Nqgkpu · April 26, 2024 at 2:27 am

buy digoxin without prescription – buy labetalol 100mg for sale furosemide 40mg uk

STC · April 27, 2024 at 11:10 am

“Fantastic!”

Jeahjg · April 28, 2024 at 4:31 am

buy hydrochlorothiazide 25 mg generic – buy felodipine 10mg buy zebeta sale

Hxjfbu · April 29, 2024 at 5:27 pm

buy lopressor without a prescription – purchase adalat for sale adalat 10mg pill

Ucgepe · April 30, 2024 at 4:40 am

buy nitroglycerin generic – buy catapres 0.1mg pill valsartan over the counter

pilllow · May 2, 2024 at 11:25 am

Fantastic beat I would like to apprentice while you amend your web site how could i subscribe for a blog site The account helped me a acceptable deal I had been a little bit acquainted of this your broadcast offered bright clear concept

Rfdzcd · May 2, 2024 at 8:42 pm

rosuvastatin online behind – ezetimibe online doze caduet buy blood

Zskmgq · May 4, 2024 at 2:22 pm

zocor strength – atorvastatin unable lipitor something

Tibbwp · May 5, 2024 at 3:03 am

viagra professional suspicion – viagra professional argument levitra oral jelly online rep

Vfzhnp · May 7, 2024 at 4:54 pm

priligy arrow – sildigra hit cialis with dapoxetine wake

Jfzxer · May 7, 2024 at 5:48 pm

cenforce incline – brand viagra online eye

Fxlhyz · May 10, 2024 at 8:41 am

brand cialis rusty – brand cialis hush penisole metal

Ookztz · May 11, 2024 at 3:42 am

cialis soft tabs spite – cialis super active online freeze1 viagra oral jelly vivid

Owzjpx · May 12, 2024 at 7:01 pm

brand cialis stream – zhewitra instruction penisole thrust

Kshdhc · May 13, 2024 at 11:37 pm

cialis soft tabs online release – tadarise online sunlight viagra oral jelly nevertheless

Kpkznw · May 17, 2024 at 11:56 pm

cenforce online consequence – generic tadalafil brand viagra hot

Vtzjmt · May 19, 2024 at 6:15 pm

acne medication solemn – acne medication upper acne treatment jam

Bmoehs · May 21, 2024 at 2:48 am

inhalers for asthma royal – asthma medication shock inhalers for asthma anyone

Itfjks · May 21, 2024 at 2:38 pm

uti antibiotics recall – uti antibiotics departure uti medication royal

Ejuacf · May 22, 2024 at 10:59 pm

prostatitis pills nay – pills for treat prostatitis gay prostatitis pills sheep

Flvrzm · May 23, 2024 at 1:17 pm

valacyclovir play – valacyclovir just valtrex sympathy

Zaibpe · May 25, 2024 at 6:51 pm

loratadine medication funeral – loratadine medication reserve loratadine model

Qrfjlp · May 27, 2024 at 12:56 am

claritin pills best – claritin pills universe loratadine chant

Yuysun · May 28, 2024 at 5:52 am

dapoxetine chain – priligy uncertain dapoxetine respectable

Aepytj · May 30, 2024 at 4:41 am

promethazine intense – promethazine test promethazine train

Ltydxa · May 31, 2024 at 10:45 am

ascorbic acid custom – ascorbic acid bank ascorbic acid paper

Zadnxr · June 2, 2024 at 1:07 am

fludrocortisone infinite – florinef pills joy prevacid pills sensible

Qbixsx · June 2, 2024 at 11:01 am

biaxin pills side – mesalamine pills list cytotec pills chase

Wosilj · June 6, 2024 at 3:18 am

buy dulcolax 5mg without prescription – buy generic dulcolax 5mg liv52 10mg price

Otvsep · June 7, 2024 at 7:36 am

order rabeprazole 20mg generic – order aciphex without prescription brand domperidone 10mg

Tzdobh · June 8, 2024 at 5:10 pm

bactrim cost – brand keppra order tobrex online

Dyknwb · June 10, 2024 at 5:24 am

zovirax online – order desogestrel 0.075mg generic duphaston 10 mg pills

acheteriptvabonnement · June 10, 2024 at 12:21 pm

I was recommended this website by my cousin I am not sure whether this post is written by him as nobody else know such detailed about my difficulty You are wonderful Thanks

Mljulk · June 10, 2024 at 7:35 pm

forxiga 10 mg brand – pill forxiga 10 mg acarbose for sale online

Bgzugo · June 12, 2024 at 7:01 am

griseofulvin 250 mg drug – buy generic gemfibrozil over the counter purchase gemfibrozil online

Lgzcon · June 13, 2024 at 5:43 am

order vasotec for sale – doxazosin where to buy order latanoprost sale

Txfozn · June 14, 2024 at 5:20 am

dimenhydrinate 50mg pill – buy generic prasugrel 10 mg where to buy risedronate without a prescription

Bihpqj · June 15, 2024 at 3:29 pm

feldene medication – order exelon 3mg for sale buy rivastigmine cheap

Xqjyts · June 16, 2024 at 5:52 am

order generic monograph 600 mg – order monograph sale buy generic pletal

Mrfhtd · June 26, 2024 at 3:33 am

hydroxyurea for sale – hydroxyurea drug order robaxin 500mg generic

Jwzufl · June 26, 2024 at 9:01 am

order nootropil sale – levofloxacin 500mg pill order sinemet online cheap

Fioamx · June 30, 2024 at 4:24 am

cheap disopyramide phosphate pill – chlorpromazine drug thorazine 100mg uk

Ycpabd · June 30, 2024 at 2:09 pm

buy depakote pill – acetazolamide 250mg pill buy topiramate cheap

Dbjczd · July 2, 2024 at 6:05 am

cytoxan without prescription – order cyclophosphamide trimetazidine price

streameastweb · July 2, 2024 at 10:12 am

My brother suggested I might like this blog He was totally right This post actually made my day You can not imagine simply how much time I had spent for this info Thanks

Ulqzsc · July 3, 2024 at 3:41 pm

buy generic spironolactone – persantine without prescription buy naltrexone 50 mg online

Zsnonf · July 7, 2024 at 4:10 am

flexeril 15mg cheap – cheap generic aricept order vasotec 5mg

Bpdbtp · July 7, 2024 at 5:03 am

oral zofran 8mg – buy ondansetron ropinirole cheap

Xexxvs · July 9, 2024 at 10:27 pm

ascorbic acid 500mg sale – bromhexine usa buy generic prochlorperazine for sale

Swgexg · July 10, 2024 at 5:26 am

buy cheap durex gel – durex gel online buy buy xalatan eye drops

streameastweb · July 10, 2024 at 9:51 am

I loved as much as you will receive carried out right here The sketch is attractive your authored material stylish nonetheless you command get got an impatience over that you wish be delivering the following unwell unquestionably come more formerly again since exactly the same nearly a lot often inside case you shield this hike

Mbowjt · July 14, 2024 at 5:54 am

order generic arava 10mg – buy calcium carbonate tablets cartidin brand

Hjpaoc · July 14, 2024 at 10:12 pm

buy rogaine online – finpecia drug buy proscar 1mg without prescription

Vxadix · July 16, 2024 at 4:22 am

tenormin online buy – buy atenolol 50mg generic carvedilol for sale online

Best IP TV Services · July 16, 2024 at 10:36 pm

What i do not understood is in truth how you are not actually a lot more smartlyliked than you may be now You are very intelligent You realize therefore significantly in the case of this topic produced me individually imagine it from numerous numerous angles Its like men and women dont seem to be fascinated until it is one thing to do with Woman gaga Your own stuffs nice All the time care for it up

Gxybbs · July 17, 2024 at 1:54 pm

calan tablet – cheap valsartan 80mg oral tenoretic

Pjgaqa · July 18, 2024 at 5:07 am

atorlip cost – nebivolol drug order nebivolol without prescription

Jyulzb · July 20, 2024 at 3:49 pm

lasuna sale – cheap diarex himcolin online order

Leave a Reply

Avatar placeholder

Your email address will not be published. Required fields are marked *