1. Accelerated gifting. A 529 plan is the only investment
vehicle allowing five years of tax-free gifts in a single year — up to $130,000
per beneficiary.
2. Estate tax benefits. All 529 plan gifts and investment
earnings are excluded from federal estate taxes due to rise from 35% to 55%
next year if the Bush tax cuts expire.
3. Legacy planning. Multiple family members and friends
can give to the same 529 plan account to help create larger college funds and
lasting legacies.
