<p>kayf yes, I was referring to Section 529(c)(5)(B) which is referenced on Schedule A of IRS Form 709 Gift (and Generation-Skipping Transfer) Tax Return. The instructions don’t deal with that specific case: <a href=“http://www.irs.gov/pub/irs-pdf/i709.pdf[/url]”>http://www.irs.gov/pub/irs-pdf/i709.pdf</a></p>
<p>I wasn’t specifically referring to the gift limit with reference to a change in beneficiary. If grandma gives Kid #1 a gift of $65,000 in a 529 and then changes beneficiary to Kid #2, this is a gift to Kid #2 and looks like it would need to be reported as such to the IRS. I’m not sure that makes sense since the original gift was already reported as such, but then again a lot of IRS rules don’t make sense.</p>
<p>I should have said it’s the giver who has to be concerned about gift taxes, not estate taxes.</p>