Grandchildren hold such a special place in the hearts of their grandparents. If you are a grandparent who wants to help pay for your grandchild’s future college costs, and possibly remove assets from your taxable estate for estate tax purposes while making a generous gift to those you love, NextGen can help:

• Contribute up to the current federal gift-tax exclusion limit of $13,000 per year ($26,000 for married couples) without incurring federal gift taxes or generation-skipping transfer tax.
• Elect to front-load your account by contributing up to $65,000 ($130,000 for married couples) per beneficiary in a single year and elect to prorate it over a five years, gift-tax free, as long as there are no further gifts to the beneficiary in the same five-year period.¹
• Contributions are generally considered completed gifts and, therefore, not part of your taxable estate.
• Give the gift of education by making a NextGen contribution for birthdays, graduation and holidays.

If you have multiple grandchildren, or even other special relatives you would like to help on their way to college, you can open multiple NextGen accounts. And, if any beneficiary does not go on to higher education, you can change the beneficiary of the account at any time.²

Browse through the site and talk to your children and grandchildren about what NextGen has to offer. It's time to dream big and plan ahead. A little planning today can go a long way to providing your grandchildren with the legacy of knowledge and opportunity.

 

Please remember there is always the potential of losing money when you invest in securities.

1 Contributions between $13,000 and $65,000 ($26,000 and $130,000 for married couples filing jointly) made in one year can be prorated over a five-year period without subjecting you to gift tax or reducing your federal unified estate and gift tax credit. If you contribute less than the $65,000 ($130,000 for married couples filing jointly) maximum, additional contributions can be made without you being subject to federal gift tax, up to a prorated level of $13,000 ($26,000 for married couples filing jointly) per year. Gift taxation may result if a contribution exceeds the available annual gift tax exclusion amount remaining for a given beneficiary in the year of contribution. For contributions between $13,000 and $65,000 ($26,000 and $130,000 for married couples filing jointly) made in one year, if the account owner dies before the end of the five-year period, a prorated portion of the contribution may be included in his or her estate for estate tax purposes. Please consult your tax and/or legal advisor for such guidance.

2 Some restrictions apply. You generally are permitted to change the beneficiary to another qualified member of the family, as defined under the Internal Revenue Code, without triggering income tax and 10% additional federal tax. Not applicable for accounts opened under a Uniform Gifts/Transfers to Minors Act registration.