
529 plans are designed for saving for education and are beneficial since contributions accumulate and grow tax-free as long as withdrawals are used for qualified education expenses. But 529 plans may also be part of a wealth transfer strategy. Donors often use 529 plans to give the gift of education, but also because of these additional features: If the Donor owns the 529 plan, they retain control of the assets.The gift removes the assets from the Donor's estate, reducing their estate taxes.
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