A Plan for Everyone:
Grandparents, Family & Friends

It’s always difficult finding that perfect gift. When you help someone pay for college, you’re giving the best gift of all — a brighter future.

You want to help your grandchild or friend’s kid on their path to college — excellent! But it can be difficult to know whether it’s better to contribute to an existing plan or open a new account. You want to know the pros and cons — like how does your grandchild or friend’s child get the money or what happens if they don’t go to school? And what are the tax implications for your estate? The Edvest College Savings Plan accounts for all this and more.

Why Save with Edvest

With Edvest, you decide how to help. If you want to own the plan, you don’t need to be a parent — anyone can start an account for anyone else. You’ll control how the money is invested and how it gets spent. You’ll also receive access to manage the account and trouble-shoot any concerns. Since there’s no age limit attached to a 529 plan, you get more options. Say you opened an account for your grandson but he doesn’t end up going to school. You can let the funds sit till he does, use them yourself to take those community college writing courses you’ve been meaning to, or transfer the funds to another grandchild.

On the other hand, if you just want to support an existing Edvest account, anyone can make a gift contribution to anyone else’s plan. Either way, the earnings portion, if any, on that investment can grow free from federal income tax. Wisconsin residents may also enjoy tax advantages. Please keep in mind that if you are not the account owner, you will not have access to the Edvest account. Any account-related questions or trouble-shooting must be coordinated with the account owner.

What Edvest Means for Estate & Legacy Planning

You might find you want to make a larger donation to your grandchild’s account but you’re hesitant to commit. What will it mean for you come tax time? What are the implications to your estate? Don’t worry, you can give with confidence and it won’t adversely impact your tax situation. In fact, there’s no federal gift tax on contributions up to $16,000 per year for single filers and $32,000 for married filers.

If you wish to make a larger contribution, there’s an option to gift amounts up to $80,000 for single filers and up to $160,000 for married filers if pro-rated over 5 years. This means you could make a one-time gift equivalent to the 5-year amount and it could all qualify for the federal gift tax exclusion. Consult your tax advisor.

Gifting – Make a Contribution to an Existing Account

Kids grow out of clothes so fast. Toys are lost and discarded. Books may or may not be read. But making a gift contribution to a child’s college education will last a lifetime. There are so many perfect opportunities to give – birthdays, holidays, graduations, and other important occasions. You may ask the account owner for a Ugift® code to make online, secure contributions as often as you’d like. Complete your gift by downloading one of our gift of education certificates and presenting it to your loved one for their special occasion.

Please note that if you are not the account owner, our college savings specialists can answer your general questions. Any account-related questions or trouble-shooting must be coordinated with the account owner.