- Estate Planning
- Calculators & Tools
- Prospecting & Marketing Materials
Estate Planning
Gifts to 529 plans can help families save for college with the potential to also reduce estate taxes. 529 plans allow five years of gift contributions, to be combined in one year.
529 plan gifts and any potential gains are removed from the contributors taxable estate, but they retain control over the account.1,2
| Contributor | Gift Tax Exemption Limit for 20253 per beneficiary |
Five Year Accelerated Gift3 per beneficiary |
|---|---|---|
| Individual | $19,000 | $95,000 |
| Married | $38,000 | $190,000 |
- Tax benefits are conditioned on meeting certain requirements. Federal income tax, a 10% federal tax penalty and state income tax and penalties apply to non-qualified withdrawals of earnings. Generation-skipping tax may apply to substantial transfers to a beneficiary at least two generations below the contributor. Gift examples are general; individual financial circumstances and state laws vary – please consult a tax professional before investing. If the contributor dies within the five-year period, a prorated portion of contributions may be included in their taxable estate. See the Program Description for more complete information.
- Because contributions to 529 plans are generally considered completed gifts for federal gift, estate, and generation-skipping transfer tax purposes they qualify, for the annual exclusion from gift taxes. In addition, you may contribute up five times the annual gift limit per beneficiary and treat it as if it were given over a five-year period, free of gift tax, so long as no other contributions are made to the same beneficiary in that five-year period.
- Source: IRS. Accelerated gifting is a special provision of 529 plans that permits a contributor to combine five years of contributions (the current year plus four future years) in a single year. However, no additional gifts may be made until five years have passed.
Calculators & Tools
Comprehensive College Planning Calculator
Investing for a college education takes a long-term plan with clear objectives. Our College Planning Calculator helps your clients compare different approaches by taking into consideration scholarships, grants, loans and your personal savings.
Use the calculator to compare various approaches that may reduce student loan payments in the future.
Important. This calculator is provided for educational purposes only and is not meant as legal, tax, estate planning or investment advice. You should review your overall tax plan with a tax professional. The results of these calculations are estimates based solely on user input and the assumptions of the calculator program. All examples are hypothetical and intended for illustrative purposes only. Investment results do not represent the future performance of any Franklin Templeton funds or 529 college investment plan.
Financial Aid Calculator
Use the financial aid calculator tool to help estimate your child’s Student Aid Index (SAI) before completing the FAFSA.
Please note that this calculator only provides directional information. You should complete the FAFSA for actual calculations.
College Search Tool
Help your clients narrow down colleges using college search tool – search by net price, selectivity, setting, graduation rate and more.
Scholarship Search Tool
There are many scholarship opportunities available – use the scholarship search tool to help uncover potential additional sources of college funding.
Prospecting & Marketing Materials
The Top 10 Things Everyone Should Know about 529 College Savings Plans
Here are ten reasons why many have selected 529 college savings plans to help invest for their loved ones' future college expenses.
529 Flyer: It Takes A Village
Saving for college may seem like an impossible task - the good news is you do not have to do it alone. This flyer shows you can maximize educational savings with the help of family and/or friends.
Early College Planning Flyer
It’s never too early to develop a comprehensive financial plan to fund an education. This flyer describes early college planning considerations for growing families.
Four Year Action Plan Flyer
When preparing for college, parents and students face many financial and academic requirements and deadlines. This year-by-year guide can help keep you on track throughout the high school journey.
Early College Planning Video
Estate Planning Flyer
529s offer many advantages, one of the most appealing features is its gifting option. This business builder explains the two types of gifting available under a 529 wrapper.
Estate Planning Video
Program Description
Provides details about the Franklin Templeton 529 College Savings Plan, including investment options, fees, expenses and investing risks.
Brochure
This brochure addresses the value of higher education, ways to pay for college and the benefits of Franklin Templeton 529 College Savings Plan.
Mini Brochure
This convenient brochure outlines the smart reasons to invest for college with Franklin Templeton 529 College Savings Plan.
New Jersey Benefits Flyer
Offers smart reasons for New Jersey families to invest for college with Franklin Templeton 529 College Savings Plan.
Quarterly Performance Update
This flyer includes performance information for each Franklin Templeton 529 College Savings Plan portfolio.
Underlying Allocations
This flyer provides detailed investment allocation and annual expense information for objective- and target enrollment year portfolios available in the Franklin Templeton 529 College Savings Plan.
529s: Beyond the Basics
This presentation provides a comprehensive overview of 529 plans, including myths and facts, tax treatment and advantages.
Early College Planning Video
Bill Cass discusses the importance of early college planning.
Estate Planning Video
Bill Cass discusses 529 plans as a part of estate planning.
All investments involve risk including possible loss of principal.
Investors should carefully consider the 529 plan’s investment goals, risks, charges and expenses before investing. To obtain the Program Description, which contains this and other information, talk to your financial professional or call Franklin Distributors, LLC, the manager and underwriter for the 529 plan at (800) DIAL BEN/342-5236 or visit franklintempleton.com. You should read the Program Description carefully before investing and consider whether your, or the beneficiary’s, home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in its qualified tuition program.
Franklin Templeton’s 529 College Savings Plan is offered and administered by the New Jersey Higher Education Student Assistance Authority (HESAA); managed and distributed by Franklin Distributors, LLC, an affiliate of Franklin Resources, Inc.,
which operates as Franklin Templeton.
Investments in Franklin Templeton’s 529 College Savings Plan are not insured by the FDIC or any other government agency and are not deposits or other obligations of any depository institution. Investments are not guaranteed by the State of New Jersey, Franklin Templeton, or its affiliates and are subject to risks, including loss of principal amount invested. Investing in the plan does not guarantee admission to any particular primary, secondary school or college, or sufficient funds for primary, secondary school or college.
This material is being provided for general informational and educational purposes and should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel and provided for educational and informational purposes only. Franklin Templeton does not provide legal or tax advice. Federal and state laws and regulations are complex and subject to change, which can materially impact your results. Franklin Templeton cannot guarantee that such information is accurate, complete or timely; and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.