By: Jessica Bruyn
Now that our youngsters are back in school, we can turn our attention to some of our other goals. When was the last time you reviewed your estate planning strategy? Did you know education savings can be a part of your estate plan?
First, let's review how estate laws affect your assets. After that, we'll show you how the special rules that apply to 529 education savings plans can help you deal with the general estate tax laws.
To simplify and summarize the estate tax, most assets you own when you die constitute your estate. If the value of your estate exceeds a specific amount ($3.5 million in 2009), then you'll be subject to federal estate tax. If you reduce the size of your estate, you can reduce the amount of estate tax owed.