How much of this will be a taxable gift if any

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Problem

"As you know, Joe's life insurance paid out $250,000. I've given a lot of thought about what I'd like to do with these funds (as you said my other assets and income should cover retirement and long-term care needs). I'd like to help pay for the grandkids' education. I know from speaking with David recently that they've saved $31,000 towards college. If I decided I wanted to fund the rest as a gift to Isabelle's and Lucas's 529 plans, how much would that be? Would I have to pay a gift tax? Sorry for so many questions - Joe and I never made any large financial gifts, so this is new to me. Is there a limit to how much can be withdrawn for college each year?" Question: After taking the existing 529 balances into account and using your assumptions regarding tuition inflation and investment returns, you have determined that Elena will need to gift $183,230.22 to the 529 plans ($93,137.98 to Isabelle, $90,092.24 to Lucas) to fully fund Isabelle's and Lucas's college education. Elena has the following questions: How much of this will be a taxable gift, if any? Explain your answer. Get the instant assignment help. Is there a dollar limit on how much can be withdrawn from a 529 plan for college expenses each year? Explain your answer.

Reference no: EM133910390

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