Contributing to a grandchild’s education not only helps ensure your grandchildren can pursue their dreams, but helps reduce the potential that they’ll be saddled with debt upon graduating. There are a number of ways to assist in paying for a grandchild’s education—from contributing to a 529 education savings plan, making direct tuition payments to a college or university, or directly gifting cash, among others. However, keep in mind that if done incorrectly, monetary gifts can adversely impact your grandchild’s ability to qualify for financial aid, which in turn may diminish the value of your gift.
Tax-advantaged strategies are also available to grandparents seeking to help grandchildren pay down or pay off student loan debt. While the gift tax exclusion enables grandparents to gift up to $14,000 a year to a single beneficiary, other estate planning strategies allow you to gift far more in a highly tax-efficient manner.
To learn more about tax-advantaged gifting strategies, call your nearest Synergy office today to schedule a time to meet.
This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.