Reply to Tax Advantaged things grandparents can do for grandchildren

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[quote=Anonymous][quote=Anonymous]The limit for exempted gifts is $36k this year (from both grandparents to grandchild).  You also didn't mention if your parents gift to your spouse as well as you (you just mentioned your trust).  Assuming they don't already gift to your husband, they could do 5 years' worth of gifting to your spouse, $160k, and that money could go into the 529 on day 1.  Then, they can still gift $36k per year for daycare until the child goes to PreK, and then beyond that keep gifting the child the max for a brokerage or savings account or to cover expenses, etc.  Then they could just keep doing this in addition to paying for school once PreK starts. In 5 years, they can superfund the 529 w/ a second gift to your husband too.  [/quote]

Technically, they can gift the daughter, the Son-In-Law (spouse) and their Grandkid each $36K/year.   So they can gift $108K per year to the family without issues.  And then utilize the paying tuition for private school directly once kid hits K+ and it doesn't count against the $36K.

It's a great way to reduce estate taxes in the future, if you are HNW/UHNW[/quote]

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