hard · Certified Financial Planner Professional Conduct
A client, Zeller, wishes to gift $190,000 to a Section 529 plan for a newborn grandchild in 2026. Zeller and his spouse file a joint tax return. They want to maximize the contribution without using any of their lifetime basic exclusion amount.
Which action is most appropriate?
- Contribute $19,000 in 2026 and wait until 2027 to contribute the remaining balance.
- Contribute $190,000 and make a five-year ratable election on a gift tax return.
- Contribute the $190,000 as a future-interest gift to the trust.
- Contribute $95,000 and use a portion of the lifetime basic exclusion for the remainder.
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