In 2011, grandparents contribute jointly owned funds to a § 529 qualified tuition plan on behalf of their granddaughter. The maximum annual exclusion allowed to them is $130,000 ($26,000 ´ 5 years).

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This statement is true. The maximum annual exclusion allowed for a § 529 qualified tuition plan is currently $15,000 per year per beneficiary. However, "gift splitting" allows married couples to combine their annual exclusions and contribute up to five times the annual exclusion in a single year without triggering gift tax. This means that grandparents can contribute up to $130,000 ($26,000 ´ 5 years) jointly to a § 529 plan without incurring gift tax.

In 2011, Grandparents Contribute Jointly Owned Funds to a §