An Easy Way to Give
It’s easy to give the gift of a contribution to a Texas College Savings Plan account. Simply follow the instructions on the gift coupon. (You will need to know your loved one’s account number to fill out the gift coupon.) After the contribution is credited, the account owner2 will receive notification of your gift.
1If the contributor utilizes the special five-year lump sum exclusion and the account owner dies within five years of the funding date, the portion of the contribution allocable to the years remaining in the five-year period (beginning with the year after the account owner’s death) would be included in the account owner’s estate for federal estate tax purposes. We recommend that you consult your tax advisor for more information on this option.
Beginning on January 1, 2022, the annual gift tax exclusion will be indexed for inflation, increasing the exclusion amount to $16,000 ($32,000 for married couples making a joint gift). This means that the maximum gift amount under the five-year averaging provision will also be increased beginning in 2022 to $80,000 ($160,000 for married couples making a joint gift).
2Non-account owners have no control over contributions. Only account owners may direct transfers, rollovers, withdrawals, investment changes and changes in the designated beneficiary. Changes in beneficiary are limited to qualified family members of the current beneficiary to avoid federal tax consequences.