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HelpfulDad
Returning Member

I'm have a 529 with $104,000. I'd like to make my daughter the beneficiary. Can we claim the 5-year election on form 709 to avoid gift taxes? We file married/jointly.

Since we're married/filing jointly, my impression is the election to spread the gift over 5 years would apply.  However, only one parent is listed as the current beneficiary, so wasn't sure if the  limit might be reduced to $75,000.
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4 Replies
KrisD15
Expert Alumni

I'm have a 529 with $104,000. I'd like to make my daughter the beneficiary. Can we claim the 5-year election on form 709 to avoid gift taxes? We file married/jointly.

Could you clarify a bit? 

Who is listed as the owner and who is listed as the beneficiary on the 529 account? 

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HelpfulDad
Returning Member

I'm have a 529 with $104,000. I'd like to make my daughter the beneficiary. Can we claim the 5-year election on form 709 to avoid gift taxes? We file married/jointly.

Sure--   I am the account owner and the account beneficiary.   

I'm have a 529 with $104,000. I'd like to make my daughter the beneficiary. Can we claim the 5-year election on form 709 to avoid gift taxes? We file married/jointly.

Yes, you can make the 5-year election and don't pay gift taxes. The transfer considers as a gift, and as Married Filing Jointly you can exclude $150,000 from the gift tax under the Form 709 election. 

HelpfulDad
Returning Member

I'm have a 529 with $104,000. I'd like to make my daughter the beneficiary. Can we claim the 5-year election on form 709 to avoid gift taxes? We file married/jointly.

Thank you so much!  It's great to have this confirmed

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