Both the gift tax and the $13,000 annual gift tax exclusion confuse nearly everyone.  The bottom line is that you can give away way more than $13,000 without paying gift tax.  In fact, most people could give away every penny they have and still not pay gift taxes.  Here’s how to give away assets without paying gift tax.

• You can give away $13,000 per calendar year to as many people as you’d like.  The annual gift tax exclusion is unlimited, so long as you spread the gift among individuals so that no one receives more than $13,000.

• However, if you’re married, this amount doubles to $26,000 per individual to an unlimited number of individuals.

• Plus, you can pay an unlimited amount directly to the provider of education or tuition for as many people as you’d like.

• Surprising to most people, with good reason, you can gift up to and additional $5,000,000 to anyone you want in 2011 and 2012, using your lifetime unified credit exemption.

• Again, if you’re married, this amount doubles to $10,000,000.

• 529 plans for higher education have special rules.  You can use 5 years of your annual gift tax exclusion all at one time for as many individuals as you would like.  This means that you can fund a 529 plan with $65,000 all at once.  But, remember that you can’t make additional gifts under your annual gift exclusion until 5 years lapses.

• You guessed it, if you’re married, you and your spouse can jointly gift $130,000 into all the 529 plans you want without incurring any gift tax.

If you make annual gift tax exclusion gifts (i.e. $13,000 or $26,000) or gift directly to a medical or education provider, you do not need to file a gift tax return.  However, if you use some of your lifetime unified credit exemption, you must file an informational gift tax return even though no taxes will be assessed.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

With the use of a college savings plan, saving for the costs of college can be a lot easier.  Texas is a state that offers several different savings plans.  The Texas College Savings Plan is just one of these opportunities.

What is the Texas College Savings Plan?

The fees associated with this plan are very low.  In order to take advantage of this plan, individuals must contribute a minimum of $25.  Your child can use the funds at almost any accredited school in the United States.

Additionally, this plan makes it possible to save for the education of anyone, including a child, grandchild, friend, or even yourself.

What are some of the benefits of the Texas College Savings Plan?

There are many benefits to this plan.  For one, you’re able to start saving as early or as late as you’d like.

You’re also able to have complete control over your contributions as well as your beneficiary designation.

You’re also able to take advantage of tax benefits.  If you make withdrawals from the account for college-related expenses, you won’t have to worry about paying federal taxes on the withdrawals.  You’re funds will also grow federal and state tax-free.

Because of the many benefits of this plan, individuals just like you are taking advantage of this opportunity to save.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Many people are taking advantage of the opportunity to contribute to a college savings plan so that they’re able to help their child with college expenses.    If you’re looking for a plan that allows you to pay for your child’s college expenses more easily, you may have heard of the Texas Tuition Promise Fund.

What is the Texas Tuition Promise Fund?

This is a college savings plan that allows you to prepay for your child’s college expenses.  Many people take advantage of this plan because of its flexibility.  You’re able to purchase units that can be used for college tuition and college fees.  Additionally, you’re able to choose which credits you purchase which includes options to prepay for a university or college education or a junior college or technical education.  This makes saving even more affordable.

To get started, you will need to invest $15.  You’re able to choose a payment plan that fits your individual financial needs, so that you’re able to save for college no matter what happens in your financial life.

What are some of the benefits of the Texas Tuition Promise Fund?

This college savings plan offers many benefits.  Your child will be able to attend almost any school!

This account is also able to receive contributions from other family members and friends so that your child is able to receive maximum support.

Additionally, this plan makes it possible for an individual to contribute up to $13,000 a year or $65,000 over a five year period, without having to pay federal gift taxes.

Are you looking for a way to ensure that your child will be able to attend college?  If so, consider the Texas Tuition Promise Fund.  If you have any questions about choosing the best college savings plan, consult with a qualified estate planning attorney.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

If you’re a Texas resident who is looking to save for your child’s future college expenses, you may be looking into contributing to a college savings plan in order to reach your savings goals.  It’s important to understand your savings options before deciding to contribute to a specific plan.  The information below nutshells the basics of the Lonestar 529 Plan.  If you have any questions about selecting a college savings plan, meet with a qualified estate planning attorney.

What is the Lonestar 529 Plan?

This plan is available to anyone regardless of their state of residence or income level.  To get stated with the Lonestar 529 Plan, you only need to contribute a minimum of $25.

This plan allows you to take part in a variety of investment opportunities so that you’re able to choose the best investment for your personal needs.

You’re able to make contributions to the account until it reaches a maximum of $320,000.

The funds in this account can be used for numerous college related expenses that your child may have.

What are some of the benefits of the Lonestar 529 Plan?

There are many benefits to this college savings plan. Because the contribution minimums are low, many people are easily able to take advantage of this plan.

Additionally, there are many tax benefits.  This includes federal and state tax-free growth.  You’re also able to make withdrawals for college related expenses without having to pay federal tax penalties.

If you create an account, you’re also able to easily manage your account online.

Are you looking to begin saving for your child’s education?  If so, you may want to consider taking advantage of the Lonestar 529 College Savings Plan.  If you have any questions about choosing a college savings plan, consult with a qualified estate planning attorney.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.