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Paying for Grandchildren’s Educational Expenses

Paying for a grandchild’s educational expenses can be a very tax-efficient and asset-protected way to transfer wealth that would otherwise be subject to estate tax, plus an additional generation skipping tax. You can give $65k ($130k if married) to a 529 plan every five years, and you can give an unlimited amount if paid directly to a qualified educational institution. A good financial advisor can then help the parents leverage the money they saved on the child’s educational expenses.