Message Font: Serif | Sans-Serif
No. of Recommendations: 3
EyesGlazed: "Does anyone know:

1. whether I can set up a 529 for a child in another state (it's my cousin's daughter - my cousin has served in the military all his life and doesn't have much money)?"


"2. whether the child must attend a college in my state in order to benefit from the 529,"


"or whether I can/must set up the 529 in the state where my cousin and his daughter live?"


"3. what the tax consequences would be to me and to my cousin?"

No tax consequences to your cousin. Your tax consequences would depend upon how much you intend to contribute - less than the annual gift tax exclusion, no tax consequences; less than five years annual exclusion, no immediate tax consequences but you would need to file tax paperwork showing that you were making advance annual exclusions; more than five years annual exclusions, even with the paperwork, you would use up part of your lifetime exemption amount for the excess, so no immediate tax consequences assuming that you have not fully used your lifetime exemption, but you would use some of it permanently.

I am not near my primary computer, but Joe Hurley's website would likely be useful to you - search "Joe Hurley" and "529" (, IIRC). Also, Kaye Thomas's website would have some useful stuff - .

Regards, JAFO
Print the post  


Paying For School Guide
Trying to Tackle Tuition? The Motley Fool's Guide to Paying for School will help you fight those rising education costs.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.