How Estate Planning and Education Savings Go Together: Leaving a Legacy of Learning

When you think about your legacy, what comes to mind? For many families, the gift of education is one of the most meaningful ways to support the next generation. Helping your children or grandchildren reach their academic dreams can be a lasting and powerful part of your estate plan. In this article, we’ll explore how estate planning and education savings—especially through tools like 529 Plans—work together, and how this approach can benefit both your loved ones and you as the giver.

Why Education Savings Belong in Your Estate Plan

Education is one of the greatest gifts you can provide. A well-planned approach ensures that your resources are used to give future generations a strong start. By weaving education savings into your estate plan, you:

• Help reduce the financial burden of higher education for your family.
• Support values of learning, growth, and opportunity.
• Create a legacy that lasts well beyond your lifetime.

What Is a 529 Plan and How Does It Help?

A 529 Plan is a special savings account designed to pay for qualified education expenses, including tuition, books, fees, and room and board.  In Florida, there are two types of plans that are similar to each other

• 529 College Savings Plans: These work like a Roth IRA—your after-tax contributions grow tax-free, and withdrawals are tax-free when used for qualified education costs.
• Prepaid Tuition Plans: These allow you to lock in current tuition rates at certain schools.

What makes 529 Plans especially useful in estate planning is their estate tax benefits. Contributions to a 529 Plan are considered completed gifts to the beneficiary, so:

• The funds are no longer part of your taxable estate (helping reduce estate taxes).
• You can contribute up to the annual gift tax exclusion amount (currently $19,000 per donor, per beneficiary in 2025) without triggering gift taxes.
• If you prefer, you can “superfund” a 529 by making up to five years’ worth of gifts at once, offering even greater estate planning flexibility.

Long-Term Benefits for You as the Giver

Reduce Your Taxable Estate

Every dollar you contribute to a 529 Plan (within allowed limits) is a dollar that can reduce your taxable estate. This means your generosity not only supports education but can also help protect more of your assets from federal estate taxes.

Enjoy Seeing the Impact During Your Lifetime

Unlike many estate gifts that are distributed after death, education savings allow you to see the direct results of your planning while you’re still here—watching your loved ones thrive and grow.

Maintain Flexibility

If one child doesn’t use the funds, you can change the beneficiary to another qualifying family member. That means your contributions are never wasted—they’ll always benefit someone in your family.

Create Purpose-Driven Wealth

By directing part of your estate toward education, you send a clear message about what matters most to you: opportunity, knowledge, and growth. Your estate plan becomes a reflection of your values.

Strategies to Include Education Savings Into Your Jacksonville Planning

Incorporating education savings into your estate plan is easier than you might think. Here are some steps:

• Consult with an estate lawyer in Jacksonville to ensure your plan is legally sound and tailored to your family’s needs.
• Review your options for 529 Plans and other tools like education trusts.
• Consider lifetime gifting strategies to maximize tax benefits while supporting your loved ones’ education.

Speak with an Estate Lawyer to Build an Estate Plan That Supports Education

At Legacy Planning Law Group, we’re passionate about helping families leave meaningful legacies. If you’re ready to create a plan that supports your children’s or grandchildren’s educational goals, schedule a Discovery Call with Team Legacy to learn how we can guide you every step of the way.