by Justin M. Kennedy Litherland, Kennedy & Associates, APC, Attorneys at Law Effective January 1, 2019 the principal and interest of 529 education accounts (college savings plans) are exempt assets for Medi-Cal eligibility purposes (AB 1785). Let’s look at an example: Ten years ago, Margaret set up 529 education accounts for each of her four grandchildren and each year Margaret deposited $5,000 per grandchild into the 529 education accounts. Currently, these 529 education accounts … [Read more...] about Good News for those interested in Medi-Cal Eligibility who have 529 Education Accounts
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. A 529 plan is an account in which you can save for educational expenses. There are two types of plans. The first is a pre-paid tuition plan which is typically sponsored by a university. The second type of plan is an investment savings plan, typically sponsored by a state or state agency. The second type of plan is the more common one. Income Tax Benefits: 529 … [Read more...] about What’s a 529 Plan and What Are the Benefits to Using One?
If you are in possession of assets that exceed the federal estate tax exclusion amount, you may want to take steps to intelligently reduce the taxable value of your estate. One way to accomplish this objective would be to somehow utilize resources while you are still alive for the benefit of those that are on your inheritance list. This is easier said than done because there is a gift tax in place. It is unified with the federal estate tax, and in 2014 there is a $5.34 million unified lifetime … [Read more...] about Funding 529 Plan Using Annual Exclusion