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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]How is putting money in a college fund have anything to do with a gift tax?  Never worried about it and put $10-30K per year in.[/quote]

Gift tax applies to transfers of funds to any person, including your children. In fact, particularly your children. It's intended to prevent people from circumventing estate taxes by giving their kids $$ before they die.  There is one special exemption that allows you to put $70,000 in a 509, but it has to be spread over 5 years, so I'm not sure that it really changes much. If you give someone an amount over the gift tax limit and don't pay the gift tax or file to apply against your exclusion, you are violating the law.  You probably won't get caught unless you get an IRS audit. [/quote]

The money in a 529 is still considered to be the parent's. [/quote]

No, that's not right.  Search it on the google engine:  https://us.axa.com/goals/saving-for-college/questions/529-plans-gift-tax-exclusion.html[/quote]

NP, but no, you are wrong.  The account owner controls the money, can change the beneficiary, and can even take the money back for himself, despite the gift tax treatment you point out.[/quote]

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