Martha, a 75-year-old widow, owns more than $8 million in assets. Martha's son, Jonathan, has two children, ages 10 and 13. Her daughter, Annie, also has two children, ages 9 and 13. Martha has decided that she wants to begin giving her assets to her grandchildren so she can minimize the size of her estate. She specifically wants to provide for her four grandchildren's college education.

What planning opportunities can you suggest so that Martha can provide for her grandchildren's education while minimizing any transfer taxes?

With the rising cost of tuition, saving money for college can be an important, yet difficult task for students and family members. Fortunately, there are ways for these individuals to save for school that may not be subject to taxes.

Answer rating: 100% (QA)

Martha should invest in 529 college savings plan scheme as this scheme will provide her tax savings ... View the full answer