What type of account should I open for my niece who is currently thirteen years old? I want to help her pay for her private schooling and college and need a type of account in which there wouldn't be any gift taxes, because I will probably deposit one lump sum of $65K. She would need immediate access to the account in order to pay for her current schooling. My sister, her mother, will be custodian of the account and will distribute the funds for schooling as necessary.
Discuss your needs with a financial planner or with a financial services company that can tell you about a "529" plan. These school tuition plans may permit you to spread your gift over several years for tax purposes in order to avoid gift taxes. The financial planner or financial services company will be able to explain the tax benefits of contributing to a 529 plan for your niece.
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Discuss your needs with a financial planner or with a financial services company that can tell you about a "529" plan. These school tuition plans may permit you to spread your gift over several years for tax purposes in order to avoid gift taxes. The financial planner or financial services company will be able to explain the tax benefits of contributing to a 529 plan for your niece.
