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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)?"


Yes.

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

No.

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

No.

"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" (savingforcollege.com, IIRC). Also, Kaye Thomas's website would have some useful stuff - www.fairmark.com .

Regards, JAFO
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