My spouse passed away in 2019. Can I combine both myself and my deceased spouse for a $30,000 child 529 contribution and avoid a gift tax?

[NCperson]

Sorry for your loss...

I think you are combining 'apples and oranges'

first there is no gift tax - nor is there a reporting requirements about a 'gift'  nor does your wife's passing limit your contribution to a 529 in either the dollar amount or the time urgency to make a contribution. 

the 529 plan remains in your name and your child is a beneficiary of the plan; you are not giving up control of the money to the child.  So there is no 'gift' occurring because the account remains in your name and not the child's. 

also, there is no $15,000 limit (but see below) so easiest if you establish the account in your name only and contribute what you think is necessary and within any limits your state plan defines. 

from IRS publication 970, page 52 (top right of the page)

How Much Can You Contribute?
Contributions to a QTP on behalf of any beneficiary can't be more than the amount necessary to provide for the qualified education expenses of the beneficiary. There are no income restrictions on the individual contributors. 

[Carl]

Also be aware that you *CAN* file a joint return and you *CAN* claim the $24K standard deduction for the *ENTIRE* 2019 tax year - even if your spouse passed on Jan 1st of the tax year. The only difference is that on your joint return under the "My Info" section you will need to check the box to indicate that "this tax filer passed away during the tax year" for your spouse.

If you will be receiving a refund and elect direct deposit from the IRS, you should leave the joint account that refund is going to, open and active to make things easier for you. If you elect to receive a paper check then if that joint account is still open it should be no problem to deposit that paper check to that account with only your endorsement and a copy of the death certificate.

[Carl]

Oh, and one more final note. When you go the e-file the return if you get a rejection messge of "SSN LOCKED" that indicates that whoever handled the final arrangements for your spouse, did their job. They would have notified the social security administration of their passing. In turn, the IRS pulls all taxpayer information from the SSA systems. So that's how the IRS will know your spouse has passed.

In such a case, the IRS will *LOCK* the SSN so that it can't be used fraudulently. so if you e-file and it's rejected as above, you will have no choice but to print, sign and mail the return to the IRS with the appropriate documentation that shows why only you and not your spouse signed the return. If it gets to that, we can help you with the appropriate documentation.

[dmertz]

No, a deceased individual cannot make a gift, the deceased individual's estate cannot make a gift (the deceased individual's will would have to have named the child's 529 plan as a beneficiary, in which case it's not a gift) and it's not permitted for you to make a split gift after the death of your spouse.  If you make a 529 contribution of more than $15,000 in 2019 you must file 2019 Form 709.