First grandchild born today!

kaneohe said:
Unless you don't mind filing the 709 gift form, consider having spouse sign check for half the amount so you each don't exceed the 14K limit/annually. (not sure of the effect on state subsidy if contribution is from 2 folks going to same 529)
You can also front load the funding if you file the 709
Grandparents Faqs on 529s - College Savings for Grandchildren
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Thanks for the info. I hadn't even considered gift tax implications.

Edit: if the funds are electronically transferred from a trust account with DW and I both being trustees, would the forms still have to be filed?
 
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KevinC said:
Congrats !! I sense a relocation is in your near future !! My 2 grandchildren live 2 miles up the road !! Just got off the phone with my 4 yr old grandson. I try daily to be half the man he thinks I am !!
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Where is the like button when you need it. [emoji173][emoji173]
 
Congratulations! I remember when our now 3 yr old granddaughter was born. It is a wonderful feeling!
 
Dash man said:
Thanks for the info. I hadn't even considered gift tax implications.

Edit: if the funds are electronically transferred from a trust account with DW and I both being trustees, would the forms still have to be filed?
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Not sure......here are some words from F709 instructions:

"Who Must File
If a gift is of community property, it is
considered made one-half by each
spouse. For example, a gift of $100,000 of
community property is considered a gift of
$50,000 made by each spouse, and each
spouse must file a gift tax return.

Likewise, each spouse must file a gift
tax return if they have made a gift of
property held by them as joint tenants or
tenants by the entirety"

I live in a community property state and do ACH
contributions into the 529. The words above are quite
clear that the gift is consider made 50-50 by each spouse.
I am concluding that if I contribute max 28K/yr, the the gift
is 14K from each spouse so we don't have to file. Too bad
the example above only used 50K which exceeds the 28K.

The likewise term in the 2nd paragraph above makes it sound
like a gift from an account held jointly would be treated similarly
(and I would think a joint trust should be similar). So make your
best judgment if you stay at/below 28K/yr. Separate checks would
be cleaner but I can sympathize w/ the electronic transactions.
 
You are a very luck man.
 
Congrats! I have 3, and like ER the novelty never wears off! Being a grandparent is pure fun.
 
IMG_0553.JPG
Can't wait see him in person next Friday! All are doing well.
 
Congratulations Dash Man - what an exciting addition to your life.

My dad started 529's with $10k for both my sons. It was a *very* appreciated gift.

Some ins/outs of 529's in no particular order.

- 529's are owned by the parent or grandparent, not the benficiary child. So when my dad started them he owned them. When he passed away - ownership passed to me. The kids are listed as the beneficiary.

- 529's are kind of like Roth IRAs. Post tax money funds them, but the growth is tax free if the funds are used for qualified expenses. If you need to withdraw money for non-qualified expenses - only the growth is taxable.

- Some states let the contributions be tax free (state tax). If so - this would be a reason to stay with your state plan.

- Parents and Grandparents can set up different plans. This might be advantageous if they are both funding them and both in states where contributions are tax free.

- I live in a state that has no tax advantages for the state plan - and the state plan isn't that great. So our 529 is based in Nevada using Vanguard funds. They've recently improved the interface over what it was.

- With the Vanguard plan you are limited to reallocations 4 times a year... so I use my contributions to rebalance if needed.

You need to look at fees/ERs in the 529's... they're not all alike.
 
rodi said:
Congratulations Dash Man - what an exciting addition to your life.

My dad started 529's with $10k for both my sons. It was a *very* appreciated gift.

Some ins/outs of 529's in no particular order.

- 529's are owned by the parent or grandparent, not the benficiary child. So when my dad started them he owned them. When he passed away - ownership passed to me. The kids are listed as the beneficiary.

- 529's are kind of like Roth IRAs. Post tax money funds them, but the growth is tax free if the funds are used for qualified expenses. If you need to withdraw money for non-qualified expenses - only the growth is taxable.

- Some states let the contributions be tax free (state tax). If so - this would be a reason to stay with your state plan.

- Parents and Grandparents can set up different plans. This might be advantageous if they are both funding them and both in states where contributions are tax free.

- I live in a state that has no tax advantages for the state plan - and the state plan isn't that great. So our 529 is based in Nevada using Vanguard funds. They've recently improved the interface over what it was.

- With the Vanguard plan you are limited to reallocations 4 times a year... so I use my contributions to rebalance if needed.

You need to look at fees/ERs in the 529's... they're not all alike.
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Thank you for the input. I'll be comparing the PA, Nevada and Washington state plans.
 
Awww...many congratulations! Grandchildren are the best! I have two granddaughters ages three and one! Nothing better than the unadulterated joy of having them run to you for hugs! Enjoy!
 
Thank you all for the nice words and good wishes! All are doing well and should be able to go home tomorrow. We are so Blessed!!!!
 
pssst.............want to get a leg up on the other 3 grandparents? Willing to resort to some mild subterfuge? A neighbor friend got me something similar to this https://www.amazon.com/Record-Your-...489804769&sr=8-11&keywords=talking+pink+bunny

(or perhaps the same thing). You record a loving message and then leave it w/ the grandkid to squeeze every night before bedtime so you are in effect there 24 hrs a time.........or at least your voice is. You might even be responsible for the first words spoken .........the parents thought our granddaughter was trying to say "Ma...ma" when she was actually imitating
the pink bunny.......as in "Can't wait to see you again and give you a great big
hug........mmmaaa" . At least that's my interpretation.
 
Congrats! I've always wanted to be a grandmother, but couldn't figure out a way to do it without having kids first. 🤣
 
kaneohe said:
pssst.............want to get a leg up on the other 3 grandparents? Willing to resort to some mild subterfuge? A neighbor friend got me something similar to this https://www.amazon.com/Record-Your-...489804769&sr=8-11&keywords=talking+pink+bunny



(or perhaps the same thing). You record a loving message and then leave it w/ the grandkid to squeeze every night before bedtime so you are in effect there 24 hrs a time.........or at least your voice is. You might even be responsible for the first words spoken .........the parents thought our granddaughter was trying to say "Ma...ma" when she was actually imitating

the pink bunny.......as in "Can't wait to see you again and give you a great big

hug........mmmaaa" . At least that's my interpretation.
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Done! Thanks for the suggestion!
 
We have one grandchild and another on the way.

Apart from setting up tax advantaged edu funds, grandchild/grandchildren have caused us to think about changes to our respective wills. We were planning an update but twill wait for number two and then move forward.

Would be interested in hearing any comments/suggestions for those who have done something similar. We both feel that provision of a post secondary and/or post graduate opportunity that is free from financial stress is one of the best gifts that we can leave behind. It would also serve as a gift to our children.
 
We have a family wealth trust where all of our major assets are kept and a pour over will that puts everything else into the trust after we pass. The trust is set up to go evenly to our two boys, with successor beneficiaries being their children should they pass. If no children, as with one of our sons, his share goes to other family members. The mother of our grandchildren will get sufficient funds to care for our grandchildren, but when the grandchildren come of age they get the funds. We can set the age that happens and also direct the trustee to pay for college.
 
brett said:
Would be interested in hearing any comments/suggestions for those who have done something similar. We both feel that provision of a post secondary and/or post graduate opportunity that is free from financial stress is one of the best gifts that we can leave behind. It would also serve as a gift to our children.
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Yes we are well into it. 5 GCs and a big fund for them all. I would not wait because you can easily add the new ones once they have their social security number. Our kids got married early so they now have two at U, each appreciating the $10k per year for four years! The third one has dreams of Harvard with a scholarship so we will see!
 
Congratulations. Words to think about - if you thought your kids grew up fast, wait until you see how quick your grand children grow up. It's rewarding but scary. Time does seem to go faster as I get older. Spend time with them. It will mean a lot to them and more to you.
 
Jerry1 said:
Congratulations. Words to think about - if you thought your kids grew up fast, wait until you see how quick your grand children grow up. It's rewarding but scary. Time does seem to go faster as I get older. Spend time with them. It will mean a lot to them and more to you.
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I've heard those wise words before. We're headed out on Friday to meet my grandson for the first time. Can't wait!!!!
I think I've decided on the Utah 529 college savings plan. Just waiting for the SSN to set it up.
 
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