Can 529 College Savings Plans Be Used Now in Estate Planning? – Annapolis and Towson Estate Planning

A person who contributes to a 529 college savings plan can front load five years’ worth of contributions ($75,000 total) into one year, without any federal gift taxes being imposed.

In that case, say that two grandparents want to help finance college for their grandchild. They are able to deposit $150,000 into his or her 529 plan.

In addition, this helps them reduce the potential impact of estate taxes.

Barron’s recent article, “529 Plans Have Morphed Into Estate Planning Tools,” says the 2017 tax law also permits the withdrawal of up to $10,000 each year to pay for K-12 education at public, private, or parochial schools.

Funds in 529 plans (up to the annual contribution limit of $15,000 ) can also be rolled over into an Achieving a Better Life Experience (ABLE) Account. That type of account promotes savings for disability-related expenses.

The money from a 529 plan for one sibling can be rolled into an ABLE account for another sibling.

Research shows that roughly $259 million has been saved thus far in these accounts, which were created five years ago.

However, this benefit will end in 2026, unless Congress extends it.

In addition to these tax law changes, you can ask your estate planning attorney about techniques for using a 529 account in that area.

A 529 college savings plan can be used to purchase computers and other technology for a student.

These savings plans can also be used by adult account holders to pay for their own education or retraining. This is happening in about 2% of 529 plans.

Experts say that these types of uses for adults are expected to increase, as technological advances change the workplace.

Reference: Barron’s (September 9, 2019) “529 Plans Have Morphed Into Estate Planning Tools”

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys

For Immediate Release

Contact: Jane Frankel Sims

410-828-7775

Contact: Frank Campbell

410-263-1667

Sims & Campbell Estates and Trusts

Frankel Sims Law and Holden & Campbell
Merge to Form Sims & Campbell

Firm will offer comprehensive Trusts & Estates services through offices in Towson and Annapolis

TOWSON, Md. (April 26,2019)  Frankel Sims Law and Holden & Campbell have jointly announced the merger of their firms to create a boutique Trusts & Estates law firm providing comprehensive services in the fields of Estate Planning, Estate Administration, Trust Administration and Charitable Giving. The combined firm will be named Sims & Campbell and have offices in Towson, Md. and Annapolis, Md.  Jane Frankel Sims and Frank Campbell will lead and hold equal ownership stakes in the firm.

Sims & Campbell will have 9 attorneys and 15 legal professionals that handle every facet of estate and wealth transfer planning, including wills, revocable living trusts, irrevocable trusts, estate and gift tax advice, and charitable giving strategies.  The firm will focus solely on Trusts & Estates but will serve a wide range of clients, from young families with modest resources to ultra-high net worth individuals.  This allows clients to remain with the firm as their level of wealth and the complexity of related estate and tax implications change over time. 

“By joining forces, we have expanded our footprint to conveniently serve clients in Maryland, D.C. and Virginia” said Jane Frankel Sims.  We are seeing some of the greatest wealth transfer in our country’s history, and we want to continue to be on the leading edge of helping our clients maintain and enhance their family’s wealth.  In addition, we aim to serve our clients for years to come, and the new firm structure will allow Sims & Campbell to thrive even after Frank and I have retired.”    

“Jane and I have always admired each other’s firms and recognized the need to provide even greater depth and breadth of focused expertise to help families amass and protect their wealth from generation to generation,” said Frank Campbell.  “Now we have even greater capabilities to make a real difference for our clients.” 

The Sims & Campbell Towson office is located at 500 York Road, on the corner of York Road and Pennsylvania Avenue in the heart of Towson.  The Annapolis office is currently located at 716 Melvin Avenue, and is moving to 181 Truman Parkway in August, 2019.  For more information, visit www.simscampbell.law.