Are you looking ahead to help support the educational goals of your beneficiaries, such as your grandchildren? There are many different tax benefits to using a 529 college savings plan, such as tax free withdrawal when those 529 funds are used specifically for qualified expenses, and tax free growth. 
As one cornerstone of your financial and estate plan, a 529 college savings plan can be very beneficial. Plenty of states also include a credit on 529 plan contributions or estate tax deductions. You should clarify this with your financial planner before setting one up. You can gift up to $15,000 annually per 529 beneficiary without any gift tax or federal estate tax impact if no other gifts are given to that same recipient during the calendar year.
You can also frontload five years of gifting under federal tax laws to help initiate the 529 account. If you have considerable wealth and a number of grandchildren, you could potentially remove a great deal of funds and assets from your personal estate by contributing money to separate 529 plan accounts for those different grandchildren.
To ensure that this fits in with the rest of the goals of your estate plan, schedule a consultation with an estate planning attorney in your area to discuss what other documentation and plans you might need in place to help pass on assets to your loved ones.
While a 529 plan might be right for your grandchildren, you might need to use other estate planning tools to ensure that your wishes are followed when passing on other assets. If you have concerns about how best to do this in light of local, state, or federal estate laws and tax concerns, our Pasadena estate planning law office can support you so that you can support your loved ones and leave behind a legacy.
