Hi,
How are you? Thanks for your help
Washington state has $2.193M estate tax exemption in 2024. Let's make it easy for me to explain my question. Say Washington state estate tax exemption is $2M rather than $2.193M.
Hypothetically, say I contribute $600,000 to my 3 grandkids 529 college fund. I also have real estate $700,000 and financial investment & retirement $1.4M. Add it up, I leave behind $2.7M if I die suddenly.
In that scenario, do I pay estate tax based on the $700,000 which exceeds $2M or I just need to pay estate tax based on the $100,000?
In other words, can 529 college fund be excluded from my net worth since it is contribution or gift? If not, would it be better off I give them tax-free annual gift ($18K) to reduce my net worth over time.
Please shed light for me. Thank you for your knowledge.
