529 Plan Misunderstandings, Elder Law Attorney, Woodstock, GA - Nelson Elder Care Law & Estate Planning in Georgia
Required

529 Plan Misunderstandings, Elder Law Attorney, Woodstock, GA


Providing for grandchildren’s college expenses is becoming an important estate planning goal for many families. Many people see it as one of the best ways to contribute to the overall health of future generations. 529 college savings plans are a very useful tool to accomplish this goal, but only if you know what they are and do not have misconceptions about them.

529 savings plans are very simple investment tools. However, they are very powerful tools, too. Done right they can help one person provide funds for someone else to afford higher education, oftentimes parents or grandparents helping their younger family members.

These savings plans are an important part of many modern estate plans as they provide the necessary education funds when they are needed. Nevertheless, many people have many misunderstandings about these plans.

U.S. News and World Report recently published a list of these common misunderstandings in an article titled 8 Common Misconceptions About 529 Plans.”

The list of misconceptions includes:

  • Am I limited to my own state’s plan? – 529 plans are administered by the states. However, you do not have to use your state’s plan. You can use any state’s plan that best suits your needs.
  • Is my income too high to contribute? – While some college savings plans do have income limits, 529 plans do not.
  • Is my money lost if my child does not use it? – If the intended beneficiary of the plan does not use the money because they do not go to school or receive scholarships, the plan can be transferred to another beneficiary without penalty.
  • Is the money only good for four-year schools? – The money in 529 plans can be used for any postsecondary education.
  • Must my beneficiary be below a certain age? – There are no age limits on 529 plans.
  • Will the plan hurt my beneficiary’s financial aid eligibility? – This can be true in some cases as the rules for financial aid are complicated. However, they can be worked around.

If you would like to make a 529 plan part of your estate plan, contact an experienced estate planning attorney to talk about it.

These plans might benefit your family and be better than other ways to provide for the education of younger family members.

Reference: U.S. News and World Report (November 24, 2014) 8 Common Misconceptions About 529 Plans

Hear From Our Clients
tes-prev
tes-next

I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.

- Charlotte

The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!

- Kerri

Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.

- Pierce

Josh Nelson, and his staff, have been amazingly helpful to our family. The ins and outs of nursing homes, the rules and regulations that govern Medicare and Medicaid are daunting and the folks at Nelson Elder Care Law have been informative, responsive, and above all, empathetic. I cannot emphasize enough how their service has taken a weight off of our shoulders especially during a world pandemic that has targeted nursing homes across our country. I highly recommend retaining Josh and his firm!

- Marcia

I had a simple legal question to them that I needed answered and they very helpful in giving me the information I needed. I highly recommend them and will reach out to them if I need more advice or assistance. Thank you for taking your time to just answer a couple of questions I had!

- Ben