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cautiousone100 writes (in part):

Have you thought of letting it continue to appreciate as your's and then giving it to her in $10,000 chunks after she graduates (and before her loans come due) - you could deliver it earlier if it doesn't screw up her aid package. I have my kids college fund in a separate, but standard account and plan to start gifting $10,000 to each child once they start college.

I reply:

It looks like you're trying to structure this to avoid triggering the unified gift/estate tax. If that's the case, there are a couple of details you should know. First, the per person, per year limit is now up to $11,000. Second, my understanding is that any money that you pay directly to the college does not count against that limit. In other words, you're much better off (from this perspective) paying the $10,000 directly to the school, because that way you retain the option of giving your kids additional money without having to worry about gift tax issues. --Bob
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