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View Diary: A Conversation w/ My Rich, Republican Father (226 comments)

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  •  For wealth of this size (3+ / 0-)
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    Odysseus, Back In Blue, mamamedusa

    they likely are not using 529s, or at least only 529s.  Since 529s have to pay out for education and at a fairly young age, you can't pack them the way that you can pack either a "Crummey trust" or a "2503(c) trust" (two types of trusts for minors recognized by the Code).  Moreoever, the investment options are limited by the plan, so most families of wealth would use a vehicle over which you would have more investment flexibility.  Finally, you usally but cash in a 529 which means that you lose some planning opportunities for using appreciated assets.

    529s are for the well off, but not the really wealthy.

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