Tuesday, February 7, 2012
A 529 education plan is a great way to start saving money for a child's education and can be a valuable estate planning tool. For estate planning purposes, a 529 education plan can be used to reduce estate taxes if estate taxes are an issue for you or prepare for your child's education in the event you die before your child becomes old enough to get a secondary education. In estate planning, it is important to look at all the "what if" scenarios and try to prepare for those scenarios. It is the same with a 529 plan. One "what if" scenario that must be addressed is what if the 529 funds outlast the child's 529 education plan. The Wall Street Journal has a great article covering this very "what if" scenario. The article entitled, "What to Do With Leftovers in 529 Plans," written by Georgette Jasen gives options enabling an individual to make an educated decision if a 529 plan ends up with "leftover" funds.