MS and MSBP an Example of the Topic Health Essays by

MS and MSBP by Expert Prof Solphie | 16 Dec 2016 Conceptual Need article test on MS and MSBP point? We will compose a custom article test explicitly for you Continue This exploration paper is about the signs and indications, etiology, conclusion, treatment ,forecast and anticipation of Munchausen Syndrome and Munchausen Syndrome by Proxy. Munchausen Syndrome and Munchausen Syndrome By Proxy Munchausen condition (MS) is characterized by Murray (1997) as described by a patients constant and persevering quest for clinical treatment for blends of manifestations of deliberately self-exacted injury and erroneously revealed symptomatology (p.1). In contrast to malingerers, these patients are indicative not on the grounds that they need to evade a specific duty or obligation, but since the consideration and care gives a type of fulfillment to a mental need. Then again, Murray (1997) characterizes Munchausen Syndrome By Proxy (MSBP) as a type of youngster misuse (p.1), wherein the guardians incites clinical sicknesses in ones kid so as to acquire clinical consideration for the kid or in times, the parent themselves. Etiology and Diagnosis The term Munchausen Syndrome, as indicated by Wikipedia (2006) was first utilized in clinical writing by Richard Asher in 1951, a British Psychiatrist who managed self-misuse patients made up accounts of their ailment. He discovered closeness between these patients that tell stunning stories of their ailment with that of Baron Munchausen. Aristocrat Karl Friedrich von Mnchhausen, a German serving the Russian military in 1750 (Wikipedia, 2006), recounted his astounding experiences during the war with the Turks. In spite of the fact that they may have truth in them, distortion of the record has been made in distributing The Adventures of Baron Munchausen, therefore the similitude with MS patients. Following twenty-six years from when Asher first utilized the term, in 1977, Dr. Roy Meadow, an English pediatrician utilized Munchausen Syndrome by Proxy to depict a type of youngster misuse where moms purposely initiate or misleadingly announced disorder of their kids so as to pick up consideration for themselves of their kid. Individuals Usually Tell EssayLab scholars: Who needs to compose paper for me? Exposition scholars prompt: Contact Us To Get Your Essay Custom Essay Writing Company Writing Paper Online To Write My Assignment For Me Essay Writer Service A main American Psychiatrists, Dr. Charles Ford sums up crafted by a few associates in a rundown of likely etiologies for MS (1996, p. 164). The soonest watched explanation behind showing Munchausen conduct was to look for food and safe house by the destitute. In this manner, being hospitalized implied a spot to remain. Some would have the craving for a particular medication and hence would show side effects of a particular ailment. Once in a while the inspiration of MS patients would be simply to trick the doctor into overseeing the medication. In which case a more profound mental etiology recommend those that have a requirement for consideration, look for delight from reliance or those that infer fulfillment at being regarded, significant, and ground-breaking. Portage (1996) gives a case of a lady who is an authority of World Health Organization who had the duty of thinking about kids uprooted by war (p. 166). She would recount tales about her work that social insurance suppliers would invest energy in her bedside and straightforwardly respect her. People with Munchausen condition habitually have a poor feeling of self. By depicting ones pseudologia fantastica, dishonestly explaining side effects and narratives (Murray, 1997, p.1) the patient gets fulfillment from expecting awesome jobs of renowned competitor, driving proficient or a jetsetter and appreciates being the focal point of clinical consideration. A minority of the MS patients experiences cerebral brokenness as confirm by pseudologia fantastica in that they have more prominent verbal capacity than sensible or hierarchical. MSBP is normally analyzed by doctors in emergency clinics and school settings and are generally alluded to therapists a short time later. Normal indications incorporate seizures, sensitivities, apnea, loose bowels, spewing and blends of factitious sicknesses ((Kahan Stern, 1980) Murray, 1997). Starvation, suffocation, dispensed vaginal/rectal wounds so as to create dying, changed research facility reports, adding fat to stool assortment, putting guardians blood into pee and the infusion of debased material intravenously, are a portion of the components utilized by MSBP cases (( Mehl et al., 1990; Pearl, 1995) Murray, 1997). Treatment, Prognosis and Prevention Since MS is a perplexing issue, regularly analyzed after broad authentic examination, the treatment is likewise troublesome. Due to its very nature, the should be interminably wiped out and taken care of, MS patients will regularly oppose treatment. The can move starting with one emergency clinic then onto the next if the determination and treatment isn't ideal. In any case, if the going to doctor speculates MS in a patient, the prompt treatment is to deal with the side effects to stay away from major, intrusive activities. Treatment of the patient should be objective by straightforwardly articulating determination to the patient and supporting relative. Any authentic sickness must be managed Patients with a factitious issue ought to be stood up to with the determination without recommending blame or censure. The doctor must address the real disease, and yet tackle the mental issue. He should pick up his patients collaboration to the street for treatment. The forecast of MS patients can cause genuine ailment, particularly if the disease will require different obtrusive strategies. Negative repercussions of delayed and continuous hospitalizations influence ones methods for living, family obligations and network inclusion. For casualties of MSBP, the feebleness of their young bodies may negatively affect different sicknesses and may prompt inevitable passing. The individuals who endure and develop may endure formative issues and mental challenges sometime down the road. With the modernization of clinical documentation, it is presently conceivable to share clinical records among medical clinics, which permit recognizing conceivable MS patients and forestalling their confusion. Restricting confirmation of patients might be the quick answer, however they ought to be alluded to a clinician for treatment. MSBP kids ought to quickly be expelled from the authority of the damaging guardian and be given a mentally steady watchman. References Noble Munchhausen (2006). Wikipedia. GNU Free Documentation License. Walk 16, 2006. http://en.wikipedia.org/wiki/Baron_Munchhausen. Portage, C. V. (1996). Falsehoods!, Lies!!, Lies!!! The Psychology of Deceit. Washington, DC: American Psychiatric Press. Recovered March 25, 2006, from Questia database: http://www.questia.com/PM.qst?a=o&d=87111665 Portage Martin, P. ( 2002). Munchausen Syndrome. Storm Encyclopedia of Medicine. USA: The Gale Group. Recovered on March 24, 2006 at http://www.healthatoz.com/healthatoz/Atoz/ency/munchausen_syndrome.jsp. Kelleher, M. D., and Kelleher, C. L. (1998). Murder Most Rare The Female Serial Killer. Westport, CT: Praeger. Recovered March 26, 2006, from Questia database: http://www.questia.com/PM.qst?a=o&d=14217482 Munchausen Syndrome. The Merck Manual of Diagnosis and Therapy. Gotten to on March 25, 2006 at http://www.merck.com/mrkshared/mmanual/section15/chapter185/185d.jsp Munchausen Syndrome (2006). Wikipedia. GNU Free Documentation License. Walk 24, 2006. http://en.wikipedia.org/wiki/Munchausen_syndrome. Murray, J. B. (1997). Munchausen Syndrome/Munchausen Syndrome by Proxy. Diary of Psychology, 131(3), 343-352. Recovered March 26, 2006, from Questia database: http://www.questia.com/PM.qst?a=o&d=76932229

The 336th Infantry and the 92nd Buffalo Infantry Division Term Paper

The 336th Infantry and the 92nd Buffalo Infantry Division - Term Paper Example In this viewpoint, a ton of accentuation was laid on the parts of military life, for example, control, hostility, and physical quality among different aspects of the taught powers. Albeit fundamental infantry abilities and skills are important for the endurance of an officers, there is something else entirely to infantry preparing than the preparation offered to those troopers prepared to battle on horsebacks, utilizing tanks, or the individuals who bargain in signs and arsenal obligations. The fundamental zone where Infantry Divisions become most valuable is in moving unpleasant territories that would somehow not be open by tanks or heavily clad vehicles. Albeit mechanical advances in the West have rendered infantry less significant in wars, the job of Infantry Divisions in wars and fights can't be ignored3. The expanded detail and multifaceted nature in military innovation and hardware has inferred that less infantry is essential in battles. Notwithstanding, during the two World Wars, the Infantry Division was the most significant instrument by which states and partners would overcome their adversaries in fights given that innovative advances had not found the military. This paper investigates the historical backdrop of the 366th Infantry Division and the 92nd Infantry Division of the U.S Army. Both the 92nd and the 366th Infantry Divisions were actuated in 1917 and served in the two World Wars after which they were disbanded. During World War I and World War II, every one of the sides of the wars required the military abilities and points of interest that would empower it adequately shield its national fringes just as to win the wars. To accomplish these goals, there was requirement for legitimate military association and organizing. For the most part, the military association and organizing utilized during the two World Wars were progressive and formalized in positions. Be that as it may, official administration and control were the save of governments, through the

Examining the challenges of Clinical Leadership

Analyzing the difficulties of Clinical Leadership A medicinal services setting establishment with cutting edge wellbeing innovation and high gauges doesnt mean quality nursing care can be offered, except if going with viable clinical administration. This paper has a solid spotlight on all parts of clinical authority. A case will be utilized to discover by what means should viable administration aptitude be. Both inward and outer components ought to be broke down. The last factors can be discovered by PESTEL. Change the executives is useful to create procedures for dealing with the issue. In suggestions, cooperation, force, correspondence and introduction aptitudes, peace promotion, enthusiastic insight and absolutist authority style all are significant to unravel the issue and a clinician ought to furnish with them. Prior to closing all the conversation, preparing myself as an intelligent professional is useful to build up my future practice. Clinical administration What is this? It has different definitions. Harper (1995, p.81) characterizes a clinical pioneer as one who has clinical aptitude in claim to fame practice region and who utilizes relational abilities to empower medical attendants and other medicinal services suppliers to convey quality patient consideration. All the more extravagantly, it additionally includes a domain where medical caretakers are engaged and where there is a dream for what's to come. Clinical initiative requires administration abilities for group building, certainty and regard of others, just as vision and strengthening. Similarly significant, clinical pioneers should likewise be acceptable communicators. In the mean time, Stanley (2006) proposes not just the previously mentioned components clinical pioneers need to illustrate, yet in addition the followings-receptive and good example. Congenial methods a clinical pioneer ought to be cordial and receptiveness instead of controlling and domineering (Stanley, 2006). Good example i mplies clinical pioneer who fills in for instance, whose conduct is imitated by different medical caretakers (Stanley, 2006). To sum up the above components, clinical administration is compelling if clinical pioneers are master in their field, and in light of the fact that they are congenial, viable communicators and enabled, can turn into a good example, spurring different medical caretakers by coordinating their qualities and convictions about nursing and care to their training (Stanley, 2006). Administration is significant in medicinal services today. In Hong Kong, Hospital Authority underlines any potential or experienced pioneers ought to be instructed and prepared. Upgrading proficient skills and working up successful authority is the top need. In real life, giving recreation expertise based preparing to medical caretakers; growing new in-house claim to fame preparing programs for attendants; offering corporate grant for abroad preparing; making full-time official improvement positions; sorting out senior official advancement program and other initiative improvement all are gainful to sustain equipped clinical pioneers (Hospital Authority yearly arrangement, 2010). Case situation This short passage will depict a case I encountered at my region of training. Having been a senior medical attendant at my working environment, I am fundamentally liable for nursing organization, for example, orchestrating get-away leave for my associates. At some point, one of my subordinates mentioned yearly leave during the Chinese Lunar New Year as she hasnt been a long get-away leave during the celebration for a couple of years. Her solicitation was basically dismissed in light of convincing explanation lacking labor. I think it was sensible to dismiss her solicitation. Be that as it may, the partner had appeared to be disillusioned my choice and griped this episode to my senior. It is the ideal opportunity for me to mull over which viewpoint, for instance, correspondence and relational abilities or poor dynamic, which I was fouling up in this administration issue. To put it plainly, there may be strife issues between the subordinate and senior. Examination There are numerous outside variables which influencing the initiative issue. It is essential to uncover them in order to expand the chances and limit the dangers to my workplace. PESTEL is an investigative apparatus to help chief to consider what outer variables are significant. Political, financial, social, innovative, moral and lawful elements or PESTEL factors in short ought to be found. The accompanying lattice shows the investigation: Lattice 1: PESTEL examination network P E S T E L for example Any imbalance enactment submitted because of subordinates demand being dismissed A great deal of elective nursing work may contribute staff submitted renunciation Staff public activity might be influenced because of awkwardness work and social time Obsolete IT supplies hinder work process and proficiency Uncalled for to the subordinate or not, absence of regard as her desire is dismissed Avoid potential risk of any adjustments in workers occasions strategy/convention Having recorded the key factor in each PESTEL territory, elaboration will be offered with respect to singular zone. Political factor can be deciphered as what's going on politically in nature in which a leader works (Mennen, 2007). A leader should focus that any imbalance mandate might be submitted, for subordinates demand for occasions during open occasions is cannot. Financial factor can be deciphered as what's going on inside the economy (Mennen, 2007). A chief should pay heed on each choice. Imprudent choice may cause furious medicinal services staff submitted abdication, for there are a ton of nursing opening offered by different centers, clinics and mature age homes. Social factor can be deciphered as what is happening socially in a situation where a chief works (Mennen, 2007). Having get-away leave during exceptional celebration is a sensible want for all move based human services staff. A leader might be in difficulty whose staff can have get-away leave as labor is so close. Innovative factor can be deciphered as what's going on in innovation which can affect what a chief does (Mennen, 2007). In such manner, obsolete medicinal services innovation can influence the administration issue too. Inefficacy might be brought about by the obsolete hardware results tedious in a basic methodology, for example, setting up a program for cutting edge staff. Moral factor can be deciphered as what is correct or wrong thoughtfully (Mennen, 2007). A leader should underscore any concluded judgment ought to be ethically adequate, for example, cutting edge staffs solicitation ought to be genuinely organized. Partiality and predisposition ought to be maintained a strategic distance from. Legitimate factor can be deciphered as what's going on with changes to enactment (Mennen, 2007). A leader should refresh his/her comprehension in any staff get-away leave convention or strategy so as to keep up the staff greatest advantage. To make a concise outline, PESTEL can empower an as sociation to foresee future dangers and make a move to escape from their effect. Change the executives The term-change the board is instituted by Lewin (1951).Change administration model is known as unfreeze, change and refreeze (Mind Tools Ltd, 2010). Change is unavoidable of something is should have been revised. This passage will investigate how the change the board model can be applied in the clinical issue. Prior to application, power field investigation ought to be performed. The investigation begins from the reason that any circumstance is held in a steady situation by a progression of equivalent and inverse powers. Change happens about when the powers become out of equalization. The investigation is helpful when a leader knows where he/she needs to go however is trapped. The accompanying shows the examination: Limiting powers Pushing powers Keeping up sufficient labor is the top need Staff discontents the occasion during the Chinese New Year Poor state of mind and low work proficiency because of no occasions during the uncommon celebration Force and order are central to maintain better patient administrations/advantage Included staff politicizes the issue (for example objection the issue to the board level) Bleeding edge staff is a significant resource in caring-request workplace To execute change, pushing powers must be more prominent than confining powers and the requirement for change has been perceived. In utilization of the Lewin (1951) model, the initial step ought to set up the association to acknowledge that change is vital, which includes separate the current the state of affairs before working up another route for the following stage (Paton McCalman, 2008). In useful advance, guaranteeing there is solid help from supervisory crew. Convincing message ought to be spread get-away leave during unique celebration is conceivable if labor is sufficient. Keeping up stable labor is basic to give quality nursing care. Simultaneously, administrative staff ought to stay open to subordinates concerns and address as far as the need to change. The subsequent stage is the place individuals start to determine their vulnerability and search for better approaches to get things done. Individuals begin to accept and act in manners that help the new course (Paton McCalman, 2008). In down to earth step, successful correspondence and strengthening are noteworthy. All the more obviously, administrative staff ought to set up each staff for what's going on if staff demands yearly leave during extraordinary celebration. Additionally, clarifications precisely by the administrative staff how the progressions will influence each staff. The third stage is the point at which the change (for example nobody is endorsement for get-away leave during unique celebration except if labor is permitted) is coming to fruition and subordinates have grasped the better approaches for convention, the association is prepared to refreeze (Paton McCalman, 2008). In functional advance, the association should stay the progressions into the way of life. Setting up input framework is useful to continue the change. Having get-away leave following unique celebration is energized. Proposals There are six proposals to illuminate the initiative issue. The idea of collaboration ought to be granted into the ward practice. Nursing care is collaboration based. The significance of collaboration ought not

Cavleta Dining Services, Inc: A Recipe for Growth? Essay

What job (assuming any) have Calveta’s values played in the organization’s achievement? Calveta’s values assumed a noteworthy job in the business’ achievement. He inspires and engages the individuals from the staff. Antonio guaranteed that staff individuals saw themselves as esteemed individuals from the association and comprehends that their responsibility is to deal with their customers, deferentially. A similar methodology was utilized with the customers guaranteeing them that the objective of the association was to completely deal with their necessities 2.Does Calveta’s working methodology offer a maintainable upper hand? Calveta’s current working methodology offers a manageable upper hand. Calveta enabled representatives to accomplish their fullest potential. It was expressed that in idea that the representatives are the most significant capital in the organization and so as to maintain that idea the organization put resources into their workers and offered development potential. Advance from inside culture was obvious at Calveta. 3.Why haven’t other food specialist co-ops replicated Calveta’s approach? Antonio Calveta’s approach is the base for his association. He endeavored to keep up the crucial the organization. Therefore, it is hard to copy his methodology. The objective of most of organizations is to make a high benefit and that’s all that they would move in the direction of. In any case, Calveta’s guarantee to convey new items and offer extraordinary support makes a decent overall revenue without it being their core interest. Calveta’s approach is expensive to them yet it works and delivers a benefit. Most different organizations would not use such techniques because of a paranoid fear of losing their benefits. 4.Given Calveta’s correspondence and inward hierarchical difficulties, how significant will preparing and advancement be to keeping up development and culture? Preparing and expert improvement are critical to the upkeep of any company’s development and culture. Pioneers of any solid organization ought to understand that improving range of abilities, expanding information, and employees’ work fulfillment are critical to the positive developm ent of the organization. Giving preparing and advancement gives chances to laborers to increase administrative abilities and addition administrative aptitudes and addition upward portability in the organization. 5.Calveta’s fifth objective is productive development. Objectives one through four are progressively moral in nature. Is objective five conflicting with the initial four? I accept that the fifth objective is predictable with the primary arrangement of objectives. Objectives one through four spotlights on the customers and the workers, which are adjusted to the company’s vision and mission. When objectives one through four are accomplished, at that point objective five will consequently be achieved in light of the fact that with expanded customers, comes expanded benefits. 6.How, if by any stretch of the imagination, ought to Calveta’s authoritative structure be changed to determine correspondence issues, safeguard the company’s culture, and bolster future development? An inward overview for the most part is a valuable device to check employees’ disappointment. From the assortment of information, an activity plan should be set up to address the degrees of disappointment. So as to protect the company’s culture and bolster future development, Calveta must accomplish a satisfactory degree of correspondence among its units and departments’ heads. Rebuilding will be a beneficial method of keeping up the Antonio’s method of culture. Compelling cross-limit work and coordinated effort required for managing unpredictability and change is required. Expanding commitment inside the top administration group and workers will enable the organization to develop. 7.Should Frank Calveta push ahead with a venture into the medical clinic part? With the proposed securing? Because of the current budgetary circumstance with the organization the venture into the medical clinic division ought to be required to be postponed as of now. The venture into the medical clinic industry ought to be proposition for an objective for future development plausibility. The proposed acqusitions points of interest are ready for growing be that as it may, Calveta needs to clear up its budgetary and business issues before extending with GSD.

Blog Archive What I Learned atStanford Graduate School of Business, Part 1

Blog Archive What I Learned at…Stanford Graduate School of Business, Part 1 In our “What I Learned at…” series, MBAs discuss the tools and skills their business schools provided as they launched their careers. Sandi Lin is the CEO and founder of Skilljar, which provides businesses with online course software. Before founding Skilljar, Sandi was a senior manager at Amazon.com in Seattle. She earned her MBA from the Stanford Graduate School of Business. In Part 1 of this three-part series, Sandi reflects on the advantages of having gained experience at a “real job” before starting her own company. Entrepreneurship is in the air at the Stanford Graduate School of Business (GSB). In 2011, 16% of the GSB class started their own companies after graduation, and many more chose to join start-ups as nonfounders. Stanford’s location in the heart of Silicon Valley, the extremely high caliber of engineering and business students on campus, and the university’s active support of start-up accelerator programs like StartX all fuel the school’s awesome entrepreneurial engine. Even the GSB’s tagline, “Change Lives, Change Organizations, Change the World,” leads students to dream big. I arrived at Stanford knowing that I wanted to start (or work at) a tech start-up after business school. My background was in transportation consulting, so this would be a significant career change for me. Unfortunately, in 2008, the global economy collapsedâ€"Lehman Brothers declared bankruptcy in September, just as I was just starting my second year at Stanford. It is hard to imagine now, but virtually all big companies declared a hiring freeze that fall and even began laying off seasoned employees. My goal had been to join a start-up, but I also had a product management job offer from Amazon.com in Seattle, where I had interned the previous summer. Although Amazon is a very well respected company today, in 2008, most people believed that Amazon was “just a retailer” and that its era of innovation was long over. I knew differently, having just witnessed the early days of the Kindle, Amazon Web Services and Fulfillment by Amazon (all of which were very small teams with MBA interns back in the summer of 2008). Not sure what to do, I looked to the Stanford network for advice. I first talked to an alumna at a Bay Area start-up that I had my eye on. She had worked at several big companies before founding her company. Her advice was gentle but bluntâ€"her company was always looking for talented people, but I had very little experience. In addition, well-known tech giants were laying off hundreds of experienced product managers. That was the reality of the job market I would be competing in. At the same time, she told me that work experience at Amazon was very well respected in the industry and that I could not go wrong by taking a position there. At Stanford, I was lucky enough to take a supply chain class with Michael Marks, an amazing leader I admired both personally and professionally. When I asked him for advice, he told me, “No matter when you decide to start a company, you will need to know how a well-run company operates. And there is no better-run company in the world than Amazon.com right now.” With their advice, I decided to put my start-up dreams on pause and take the job at Amazon, where I spent the next four years in various product management roles. Looking back now, I cannot imagine taking the entrepreneurial leap without the experience I developed during those years. Thanks to Amazon, I met my co-founders, most of my early employees and several of my future investors. I learned how to build and launch a tech product, how to hire and manage a team and how to run a business. While it may be true that nothing prepares you for a start-up like launching a start-up, I now know that my decision to work at an established company after graduation has given me the best chance of success with Skilljar. Click here to read Part 2. Share ThisTweet Stanford University (Stanford Graduate School of Business) What I Learned at...

Pros and Cons of 529s for Grandparents

Surveys show that many grandparents like the idea of using part of their wealth to help pay for their grandchildren's college expenses. Grandparents recognize not only the value of a college education but also how difficult it can be for grandchildren and their parents to pay or borrow their way through college as costs keep rising. We have an entire section of the site devoted to grandparents. Here are the essential reasons why grandparents should consider using 529 plans, along with a few cautions. Pros: Your money won't mess up your grandchild's income tax returns. The money in a 529 plan grows tax-deferred, so there are no interest, dividends, or capital-gains distributions to report on the child's income tax return. Most parents will love not having to worry about even filing tax returns for their children as the account grows through the years. They won't love it so much if you instead decide to make straight gifts to your grandchild, causing income tax headaches and a high tax bill, especially now that the abominable "kiddie tax" has been expanded to include college students up through the age of 23. Your money won't mess up your grandchild. Simply stated, the grandchild named as beneficiary on the 529 account has absolutely no rights to the money no matter how old he or she gets to be. The grandparent continues to have complete ownership and control for as long as he or she decides to keep the money in the 529 plan. How many times have you heard about a child making poor decisions because of the money that legally comes their way at the age of 18 or 21? In spite of the grandparents' best intentions, gifts of cash or stocks made while the child is young can become a parent's nightmare. That won't happen with a 529 plan. You will be reducing exposure to estate taxes. A 529 plan offers the only way for you to remove assets from your estate while retaining all of your ownership rights. Your contributions into the 529 plan are treated as completed gifts from you to the account beneficiary. Gifts are subject to a federal gift tax, but you have an annual exclusion of $12,000 to apply towards each beneficiary before running into taxable territory. (Even if your gifts do go over the annual exclusion amount, you pay the federal gift tax only after you exhaust your $1 million lifetime exemption.) A special rule available only with 529 plans allows to you accelerate five years worth of annual exclusions into one year. This means that you can put as much as $60,000 ($120,000 for a couple) into a 529 plan for each grandchild and stay within your gift-tax annual exclusion. Your college savings fund will grow faster. It grows faster because the 529 account is not subject to tax. End of story? Well, not quite. You should also know that 529 plans offer a variety of investment options. Many grandparents tend towards the more conservative options, which provide the greatest tax break when compared to their taxable counterparts. Many experts are predicting that income tax rates will be increasing regardless of who wins the upcoming presidential election, but 529 plans will assuredly retain their tax-favored status. You may be eligible for a state income tax break. Take a look at the tax rules in the state you live in. Are you able to deduct on your state income tax return the contributions you make to the in-state 529 plan? Thirty-five states (including D.C.) offer a deduction or state tax credit for in-state contributions. Seven states (AZ, KS, ME, MN, MO, MT and PA) offer a break when using either the in-state or an out-of-state 529 plan. It's unlikely your state gives you dollars towards any other type of college investment. You can change your mind. As the owner of the 529 account, you determine when to take a withdrawal, how much to withdraw, and what to use the money for. Of course, it's tax-free only if you withdraw for the designated beneficiary's qualified higher education expenses. Otherwise, you will owe tax on the earnings portion of the withdrawal and in most cases a federal 10% tax penalty on those earnings. The comfort of knowing the money is there for you in the event you change your mind about paying college expenses is very reassuring to many grandparents who resist making outright gifts. Of course, very few do change their minds, except perhaps to switch the beneficiary designation to a different family member if it turns out that the original beneficiary no longer needs the money for college. A 529 plan can be a great place for RMDs If you are taking required minimum distributions ("RMD") from your IRA, but have no spending needs beyond what you receive from other income sources, consider using the IRA money to fund 529 accounts for your grandchildren. The IRA distributions are still subject to income tax, but once in the 529 plan that money will grow tax-free and remain outside your estate as long as it is eventually used for qualified higher education expenses. Cons: You might be able to reduce your gross estate even more with other approaches. Perhaps you've already committed to an estate plan that applies your gift-tax annual exclusion to life insurance trusts, family limited partnerships, or other vehicles. Without a sufficient amount of unused annual exclusion, the contributions you make to a 529 plan for your grandchild can generate taxable gifts that use up part of your $1 million lifetime exemption, which in turn offsets your available estate tax exemption ($2 million if you were to die in 2008). Instead of saving in a 529 plan now, you can pay the college tuition bills directly to the school later on. Direct payments of tuition are excluded from the definition of a gift (the Section 2503(e) exclusion). But note that the direct payment option does not apply to the non-tuition categories of expense that can be paid from a 529 plan; that it requires you live long enough to see your grandchild off to college; and that payments received by the college from a grandparent can cause a financial-aid award to be rescinded. You'll have to coordinate your withdrawals with the parents. If you are using a 529 plan, it's a safe bet that the parents of your grandchild are using one too. When it comes time to pay for college, whose account is tapped first? You will need to have that discussion at an appropriate time to ensure that no one faces an unexpected tax bill. You may even consider transferring ownership of your 529 account to the parents of your grandchild at some point in the future, and leaving it up to them to make all decisions regarding the use of the account. Check to be sure that your 529 plan accepts requests to change account ownerï ¿ ½a few 529 plans do not. Your grandchild's college may ask about your 529 plan. The treatment of a 529 plan under the federal financial aid formula is discussed above. But some colleges have their own money to dole out to deserving students, and they may want to know about any money already set aside in 529 accounts before awarding a grant or scholarship to your grandchild. This is another reason to bring in the parents beforehand and discuss the best way to set up and use your 529 account. You may lose out on Medicaid. If you were ever to seek Medicaid assistance for the payment of medical and long-term care expenses, the state in which you live is likely to view any 529 accounts under your ownership as available assets that must first be spent on your care before Medicaid payments can begin. This is an issue that should be covered as part of your discussions with an attorney. Your heirs lose out on a "step-up" in tax basis. If you were to die, the mutual funds and similar investments included in your gross estate receive a tax basis step-up to current value. When these assets are sold by your heirs, they will not be subject to capital gains tax on any appreciation previous to your death. Since 529 accounts are excluded from your estate, there is no step-up in tax basis. In most instances, this won't make any difference as the distributions from the 529 plan will be entirely tax-free when used to pay the beneficiary's qualified higher education expenses. It will only be in the event of a non-qualified distribution that the lack of step-up will result in higher taxes. Posted August 1, 2008 Surveys show that many grandparents like the idea of using part of their wealth to help pay for their grandchildren's college expenses. Grandparents recognize not only the value of a college education but also how difficult it can be for grandchildren and their parents to pay or borrow their way through college as costs keep rising. We have an entire section of the site devoted to grandparents. Here are the essential reasons why grandparents should consider using 529 plans, along with a few cautions. Pros: Your money won't mess up your grandchild's income tax returns. The money in a 529 plan grows tax-deferred, so there are no interest, dividends, or capital-gains distributions to report on the child's income tax return. Most parents will love not having to worry about even filing tax returns for their children as the account grows through the years. They won't love it so much if you instead decide to make straight gifts to your grandchild, causing income tax headaches and a high tax bill, especially now that the abominable "kiddie tax" has been expanded to include college students up through the age of 23. Your money won't mess up your grandchild. Simply stated, the grandchild named as beneficiary on the 529 account has absolutely no rights to the money no matter how old he or she gets to be. The grandparent continues to have complete ownership and control for as long as he or she decides to keep the money in the 529 plan. How many times have you heard about a child making poor decisions because of the money that legally comes their way at the age of 18 or 21? In spite of the grandparents' best intentions, gifts of cash or stocks made while the child is young can become a parent's nightmare. That won't happen with a 529 plan. You will be reducing exposure to estate taxes. A 529 plan offers the only way for you to remove assets from your estate while retaining all of your ownership rights. Your contributions into the 529 plan are treated as completed gifts from you to the account beneficiary. Gifts are subject to a federal gift tax, but you have an annual exclusion of $12,000 to apply towards each beneficiary before running into taxable territory. (Even if your gifts do go over the annual exclusion amount, you pay the federal gift tax only after you exhaust your $1 million lifetime exemption.) A special rule available only with 529 plans allows to you accelerate five years worth of annual exclusions into one year. This means that you can put as much as $60,000 ($120,000 for a couple) into a 529 plan for each grandchild and stay within your gift-tax annual exclusion. Your college savings fund will grow faster. It grows faster because the 529 account is not subject to tax. End of story? Well, not quite. You should also know that 529 plans offer a variety of investment options. Many grandparents tend towards the more conservative options, which provide the greatest tax break when compared to their taxable counterparts. Many experts are predicting that income tax rates will be increasing regardless of who wins the upcoming presidential election, but 529 plans will assuredly retain their tax-favored status. You may be eligible for a state income tax break. Take a look at the tax rules in the state you live in. Are you able to deduct on your state income tax return the contributions you make to the in-state 529 plan? Thirty-five states (including D.C.) offer a deduction or state tax credit for in-state contributions. Seven states (AZ, KS, ME, MN, MO, MT and PA) offer a break when using either the in-state or an out-of-state 529 plan. It's unlikely your state gives you dollars towards any other type of college investment. You can change your mind. As the owner of the 529 account, you determine when to take a withdrawal, how much to withdraw, and what to use the money for. Of course, it's tax-free only if you withdraw for the designated beneficiary's qualified higher education expenses. Otherwise, you will owe tax on the earnings portion of the withdrawal and in most cases a federal 10% tax penalty on those earnings. The comfort of knowing the money is there for you in the event you change your mind about paying college expenses is very reassuring to many grandparents who resist making outright gifts. Of course, very few do change their minds, except perhaps to switch the beneficiary designation to a different family member if it turns out that the original beneficiary no longer needs the money for college. A 529 plan can be a great place for RMDs If you are taking required minimum distributions ("RMD") from your IRA, but have no spending needs beyond what you receive from other income sources, consider using the IRA money to fund 529 accounts for your grandchildren. The IRA distributions are still subject to income tax, but once in the 529 plan that money will grow tax-free and remain outside your estate as long as it is eventually used for qualified higher education expenses. Cons: You might be able to reduce your gross estate even more with other approaches. Perhaps you've already committed to an estate plan that applies your gift-tax annual exclusion to life insurance trusts, family limited partnerships, or other vehicles. Without a sufficient amount of unused annual exclusion, the contributions you make to a 529 plan for your grandchild can generate taxable gifts that use up part of your $1 million lifetime exemption, which in turn offsets your available estate tax exemption ($2 million if you were to die in 2008). Instead of saving in a 529 plan now, you can pay the college tuition bills directly to the school later on. Direct payments of tuition are excluded from the definition of a gift (the Section 2503(e) exclusion). But note that the direct payment option does not apply to the non-tuition categories of expense that can be paid from a 529 plan; that it requires you live long enough to see your grandchild off to college; and that payments received by the college from a grandparent can cause a financial-aid award to be rescinded. You'll have to coordinate your withdrawals with the parents. If you are using a 529 plan, it's a safe bet that the parents of your grandchild are using one too. When it comes time to pay for college, whose account is tapped first? You will need to have that discussion at an appropriate time to ensure that no one faces an unexpected tax bill. You may even consider transferring ownership of your 529 account to the parents of your grandchild at some point in the future, and leaving it up to them to make all decisions regarding the use of the account. Check to be sure that your 529 plan accepts requests to change account ownerï ¿ ½a few 529 plans do not. Your grandchild's college may ask about your 529 plan. The treatment of a 529 plan under the federal financial aid formula is discussed above. But some colleges have their own money to dole out to deserving students, and they may want to know about any money already set aside in 529 accounts before awarding a grant or scholarship to your grandchild. This is another reason to bring in the parents beforehand and discuss the best way to set up and use your 529 account. You may lose out on Medicaid. If you were ever to seek Medicaid assistance for the payment of medical and long-term care expenses, the state in which you live is likely to view any 529 accounts under your ownership as available assets that must first be spent on your care before Medicaid payments can begin. This is an issue that should be covered as part of your discussions with an attorney. Your heirs lose out on a "step-up" in tax basis. If you were to die, the mutual funds and similar investments included in your gross estate receive a tax basis step-up to current value. When these assets are sold by your heirs, they will not be subject to capital gains tax on any appreciation previous to your death. Since 529 accounts are excluded from your estate, there is no step-up in tax basis. In most instances, this won't make any difference as the distributions from the 529 plan will be entirely tax-free when used to pay the beneficiary's qualified higher education expenses. It will only be in the event of a non-qualified distribution that the lack of step-up will result in higher taxes. Posted August 1, 2008 Pros and Cons of 529s for Grandparents Surveys show that many grandparents like the idea of using part of their wealth to help pay for their grandchildren's college expenses. Grandparents recognize not only the value of a college education but also how difficult it can be for grandchildren and their parents to pay or borrow their way through college as costs keep rising. We have an entire section of the site devoted to grandparents. Here are the essential reasons why grandparents should consider using 529 plans, along with a few cautions. Pros: Your money won't mess up your grandchild's income tax returns. The money in a 529 plan grows tax-deferred, so there are no interest, dividends, or capital-gains distributions to report on the child's income tax return. Most parents will love not having to worry about even filing tax returns for their children as the account grows through the years. They won't love it so much if you instead decide to make straight gifts to your grandchild, causing income tax headaches and a high tax bill, especially now that the abominable "kiddie tax" has been expanded to include college students up through the age of 23. Your money won't mess up your grandchild. Simply stated, the grandchild named as beneficiary on the 529 account has absolutely no rights to the money no matter how old he or she gets to be. The grandparent continues to have complete ownership and control for as long as he or she decides to keep the money in the 529 plan. How many times have you heard about a child making poor decisions because of the money that legally comes their way at the age of 18 or 21? In spite of the grandparents' best intentions, gifts of cash or stocks made while the child is young can become a parent's nightmare. That won't happen with a 529 plan. You will be reducing exposure to estate taxes. A 529 plan offers the only way for you to remove assets from your estate while retaining all of your ownership rights. Your contributions into the 529 plan are treated as completed gifts from you to the account beneficiary. Gifts are subject to a federal gift tax, but you have an annual exclusion of $12,000 to apply towards each beneficiary before running into taxable territory. (Even if your gifts do go over the annual exclusion amount, you pay the federal gift tax only after you exhaust your $1 million lifetime exemption.) A special rule available only with 529 plans allows to you accelerate five years worth of annual exclusions into one year. This means that you can put as much as $60,000 ($120,000 for a couple) into a 529 plan for each grandchild and stay within your gift-tax annual exclusion. Your college savings fund will grow faster. It grows faster because the 529 account is not subject to tax. End of story? Well, not quite. You should also know that 529 plans offer a variety of investment options. Many grandparents tend towards the more conservative options, which provide the greatest tax break when compared to their taxable counterparts. Many experts are predicting that income tax rates will be increasing regardless of who wins the upcoming presidential election, but 529 plans will assuredly retain their tax-favored status. You may be eligible for a state income tax break. Take a look at the tax rules in the state you live in. Are you able to deduct on your state income tax return the contributions you make to the in-state 529 plan? Thirty-five states (including D.C.) offer a deduction or state tax credit for in-state contributions. Seven states (AZ, KS, ME, MN, MO, MT and PA) offer a break when using either the in-state or an out-of-state 529 plan. It's unlikely your state gives you dollars towards any other type of college investment. You can change your mind. As the owner of the 529 account, you determine when to take a withdrawal, how much to withdraw, and what to use the money for. Of course, it's tax-free only if you withdraw for the designated beneficiary's qualified higher education expenses. Otherwise, you will owe tax on the earnings portion of the withdrawal and in most cases a federal 10% tax penalty on those earnings. The comfort of knowing the money is there for you in the event you change your mind about paying college expenses is very reassuring to many grandparents who resist making outright gifts. Of course, very few do change their minds, except perhaps to switch the beneficiary designation to a different family member if it turns out that the original beneficiary no longer needs the money for college. A 529 plan can be a great place for RMDs If you are taking required minimum distributions ("RMD") from your IRA, but have no spending needs beyond what you receive from other income sources, consider using the IRA money to fund 529 accounts for your grandchildren. The IRA distributions are still subject to income tax, but once in the 529 plan that money will grow tax-free and remain outside your estate as long as it is eventually used for qualified higher education expenses. Cons: You might be able to reduce your gross estate even more with other approaches. Perhaps you've already committed to an estate plan that applies your gift-tax annual exclusion to life insurance trusts, family limited partnerships, or other vehicles. Without a sufficient amount of unused annual exclusion, the contributions you make to a 529 plan for your grandchild can generate taxable gifts that use up part of your $1 million lifetime exemption, which in turn offsets your available estate tax exemption ($2 million if you were to die in 2008). Instead of saving in a 529 plan now, you can pay the college tuition bills directly to the school later on. Direct payments of tuition are excluded from the definition of a gift (the Section 2503(e) exclusion). But note that the direct payment option does not apply to the non-tuition categories of expense that can be paid from a 529 plan; that it requires you live long enough to see your grandchild off to college; and that payments received by the college from a grandparent can cause a financial-aid award to be rescinded. You'll have to coordinate your withdrawals with the parents. If you are using a 529 plan, it's a safe bet that the parents of your grandchild are using one too. When it comes time to pay for college, whose account is tapped first? You will need to have that discussion at an appropriate time to ensure that no one faces an unexpected tax bill. You may even consider transferring ownership of your 529 account to the parents of your grandchild at some point in the future, and leaving it up to them to make all decisions regarding the use of the account. Check to be sure that your 529 plan accepts requests to change account ownerï ¿ ½a few 529 plans do not. Your grandchild's college may ask about your 529 plan. The treatment of a 529 plan under the federal financial aid formula is discussed above. But some colleges have their own money to dole out to deserving students, and they may want to know about any money already set aside in 529 accounts before awarding a grant or scholarship to your grandchild. This is another reason to bring in the parents beforehand and discuss the best way to set up and use your 529 account. You may lose out on Medicaid. If you were ever to seek Medicaid assistance for the payment of medical and long-term care expenses, the state in which you live is likely to view any 529 accounts under your ownership as available assets that must first be spent on your care before Medicaid payments can begin. This is an issue that should be covered as part of your discussions with an attorney. Your heirs lose out on a "step-up" in tax basis. If you were to die, the mutual funds and similar investments included in your gross estate receive a tax basis step-up to current value. When these assets are sold by your heirs, they will not be subject to capital gains tax on any appreciation previous to your death. Since 529 accounts are excluded from your estate, there is no step-up in tax basis. In most instances, this won't make any difference as the distributions from the 529 plan will be entirely tax-free when used to pay the beneficiary's qualified higher education expenses. It will only be in the event of a non-qualified distribution that the lack of step-up will result in higher taxes. Posted August 1, 2008 Surveys show that many grandparents like the idea of using part of their wealth to help pay for their grandchildren's college expenses. Grandparents recognize not only the value of a college education but also how difficult it can be for grandchildren and their parents to pay or borrow their way through college as costs keep rising. We have an entire section of the site devoted to grandparents. Here are the essential reasons why grandparents should consider using 529 plans, along with a few cautions. Pros: Your money won't mess up your grandchild's income tax returns. The money in a 529 plan grows tax-deferred, so there are no interest, dividends, or capital-gains distributions to report on the child's income tax return. Most parents will love not having to worry about even filing tax returns for their children as the account grows through the years. They won't love it so much if you instead decide to make straight gifts to your grandchild, causing income tax headaches and a high tax bill, especially now that the abominable "kiddie tax" has been expanded to include college students up through the age of 23. Your money won't mess up your grandchild. Simply stated, the grandchild named as beneficiary on the 529 account has absolutely no rights to the money no matter how old he or she gets to be. The grandparent continues to have complete ownership and control for as long as he or she decides to keep the money in the 529 plan. How many times have you heard about a child making poor decisions because of the money that legally comes their way at the age of 18 or 21? In spite of the grandparents' best intentions, gifts of cash or stocks made while the child is young can become a parent's nightmare. That won't happen with a 529 plan. You will be reducing exposure to estate taxes. A 529 plan offers the only way for you to remove assets from your estate while retaining all of your ownership rights. Your contributions into the 529 plan are treated as completed gifts from you to the account beneficiary. Gifts are subject to a federal gift tax, but you have an annual exclusion of $12,000 to apply towards each beneficiary before running into taxable territory. (Even if your gifts do go over the annual exclusion amount, you pay the federal gift tax only after you exhaust your $1 million lifetime exemption.) A special rule available only with 529 plans allows to you accelerate five years worth of annual exclusions into one year. This means that you can put as much as $60,000 ($120,000 for a couple) into a 529 plan for each grandchild and stay within your gift-tax annual exclusion. Your college savings fund will grow faster. It grows faster because the 529 account is not subject to tax. End of story? Well, not quite. You should also know that 529 plans offer a variety of investment options. Many grandparents tend towards the more conservative options, which provide the greatest tax break when compared to their taxable counterparts. Many experts are predicting that income tax rates will be increasing regardless of who wins the upcoming presidential election, but 529 plans will assuredly retain their tax-favored status. You may be eligible for a state income tax break. Take a look at the tax rules in the state you live in. Are you able to deduct on your state income tax return the contributions you make to the in-state 529 plan? Thirty-five states (including D.C.) offer a deduction or state tax credit for in-state contributions. Seven states (AZ, KS, ME, MN, MO, MT and PA) offer a break when using either the in-state or an out-of-state 529 plan. It's unlikely your state gives you dollars towards any other type of college investment. You can change your mind. As the owner of the 529 account, you determine when to take a withdrawal, how much to withdraw, and what to use the money for. Of course, it's tax-free only if you withdraw for the designated beneficiary's qualified higher education expenses. Otherwise, you will owe tax on the earnings portion of the withdrawal and in most cases a federal 10% tax penalty on those earnings. The comfort of knowing the money is there for you in the event you change your mind about paying college expenses is very reassuring to many grandparents who resist making outright gifts. Of course, very few do change their minds, except perhaps to switch the beneficiary designation to a different family member if it turns out that the original beneficiary no longer needs the money for college. A 529 plan can be a great place for RMDs If you are taking required minimum distributions ("RMD") from your IRA, but have no spending needs beyond what you receive from other income sources, consider using the IRA money to fund 529 accounts for your grandchildren. The IRA distributions are still subject to income tax, but once in the 529 plan that money will grow tax-free and remain outside your estate as long as it is eventually used for qualified higher education expenses. Cons: You might be able to reduce your gross estate even more with other approaches. Perhaps you've already committed to an estate plan that applies your gift-tax annual exclusion to life insurance trusts, family limited partnerships, or other vehicles. Without a sufficient amount of unused annual exclusion, the contributions you make to a 529 plan for your grandchild can generate taxable gifts that use up part of your $1 million lifetime exemption, which in turn offsets your available estate tax exemption ($2 million if you were to die in 2008). Instead of saving in a 529 plan now, you can pay the college tuition bills directly to the school later on. Direct payments of tuition are excluded from the definition of a gift (the Section 2503(e) exclusion). But note that the direct payment option does not apply to the non-tuition categories of expense that can be paid from a 529 plan; that it requires you live long enough to see your grandchild off to college; and that payments received by the college from a grandparent can cause a financial-aid award to be rescinded. You'll have to coordinate your withdrawals with the parents. If you are using a 529 plan, it's a safe bet that the parents of your grandchild are using one too. When it comes time to pay for college, whose account is tapped first? You will need to have that discussion at an appropriate time to ensure that no one faces an unexpected tax bill. You may even consider transferring ownership of your 529 account to the parents of your grandchild at some point in the future, and leaving it up to them to make all decisions regarding the use of the account. Check to be sure that your 529 plan accepts requests to change account ownerï ¿ ½a few 529 plans do not. Your grandchild's college may ask about your 529 plan. The treatment of a 529 plan under the federal financial aid formula is discussed above. But some colleges have their own money to dole out to deserving students, and they may want to know about any money already set aside in 529 accounts before awarding a grant or scholarship to your grandchild. This is another reason to bring in the parents beforehand and discuss the best way to set up and use your 529 account. You may lose out on Medicaid. If you were ever to seek Medicaid assistance for the payment of medical and long-term care expenses, the state in which you live is likely to view any 529 accounts under your ownership as available assets that must first be spent on your care before Medicaid payments can begin. This is an issue that should be covered as part of your discussions with an attorney. Your heirs lose out on a "step-up" in tax basis. If you were to die, the mutual funds and similar investments included in your gross estate receive a tax basis step-up to current value. When these assets are sold by your heirs, they will not be subject to capital gains tax on any appreciation previous to your death. Since 529 accounts are excluded from your estate, there is no step-up in tax basis. In most instances, this won't make any difference as the distributions from the 529 plan will be entirely tax-free when used to pay the beneficiary's qualified higher education expenses. It will only be in the event of a non-qualified distribution that the lack of step-up will result in higher taxes. Posted August 1, 2008 Pros and Cons of 529s for Grandparents Surveys show that many grandparents like the idea of using part of their wealth to help pay for their grandchildren's college expenses. Grandparents recognize not only the value of a college education but also how difficult it can be for grandchildren and their parents to pay or borrow their way through college as costs keep rising. We have an entire section of the site devoted to grandparents. Here are the essential reasons why grandparents should consider using 529 plans, along with a few cautions. Pros: Your money won't mess up your grandchild's income tax returns. The money in a 529 plan grows tax-deferred, so there are no interest, dividends, or capital-gains distributions to report on the child's income tax return. Most parents will love not having to worry about even filing tax returns for their children as the account grows through the years. They won't love it so much if you instead decide to make straight gifts to your grandchild, causing income tax headaches and a high tax bill, especially now that the abominable "kiddie tax" has been expanded to include college students up through the age of 23. Your money won't mess up your grandchild. Simply stated, the grandchild named as beneficiary on the 529 account has absolutely no rights to the money no matter how old he or she gets to be. The grandparent continues to have complete ownership and control for as long as he or she decides to keep the money in the 529 plan. How many times have you heard about a child making poor decisions because of the money that legally comes their way at the age of 18 or 21? In spite of the grandparents' best intentions, gifts of cash or stocks made while the child is young can become a parent's nightmare. That won't happen with a 529 plan. You will be reducing exposure to estate taxes. A 529 plan offers the only way for you to remove assets from your estate while retaining all of your ownership rights. Your contributions into the 529 plan are treated as completed gifts from you to the account beneficiary. Gifts are subject to a federal gift tax, but you have an annual exclusion of $12,000 to apply towards each beneficiary before running into taxable territory. (Even if your gifts do go over the annual exclusion amount, you pay the federal gift tax only after you exhaust your $1 million lifetime exemption.) A special rule available only with 529 plans allows to you accelerate five years worth of annual exclusions into one year. This means that you can put as much as $60,000 ($120,000 for a couple) into a 529 plan for each grandchild and stay within your gift-tax annual exclusion. Your college savings fund will grow faster. It grows faster because the 529 account is not subject to tax. End of story? Well, not quite. You should also know that 529 plans offer a variety of investment options. Many grandparents tend towards the more conservative options, which provide the greatest tax break when compared to their taxable counterparts. Many experts are predicting that income tax rates will be increasing regardless of who wins the upcoming presidential election, but 529 plans will assuredly retain their tax-favored status. You may be eligible for a state income tax break. Take a look at the tax rules in the state you live in. Are you able to deduct on your state income tax return the contributions you make to the in-state 529 plan? Thirty-five states (including D.C.) offer a deduction or state tax credit for in-state contributions. Seven states (AZ, KS, ME, MN, MO, MT and PA) offer a break when using either the in-state or an out-of-state 529 plan. It's unlikely your state gives you dollars towards any other type of college investment. You can change your mind. As the owner of the 529 account, you determine when to take a withdrawal, how much to withdraw, and what to use the money for. Of course, it's tax-free only if you withdraw for the designated beneficiary's qualified higher education expenses. Otherwise, you will owe tax on the earnings portion of the withdrawal and in most cases a federal 10% tax penalty on those earnings. The comfort of knowing the money is there for you in the event you change your mind about paying college expenses is very reassuring to many grandparents who resist making outright gifts. Of course, very few do change their minds, except perhaps to switch the beneficiary designation to a different family member if it turns out that the original beneficiary no longer needs the money for college. A 529 plan can be a great place for RMDs If you are taking required minimum distributions ("RMD") from your IRA, but have no spending needs beyond what you receive from other income sources, consider using the IRA money to fund 529 accounts for your grandchildren. The IRA distributions are still subject to income tax, but once in the 529 plan that money will grow tax-free and remain outside your estate as long as it is eventually used for qualified higher education expenses. Cons: You might be able to reduce your gross estate even more with other approaches. Perhaps you've already committed to an estate plan that applies your gift-tax annual exclusion to life insurance trusts, family limited partnerships, or other vehicles. Without a sufficient amount of unused annual exclusion, the contributions you make to a 529 plan for your grandchild can generate taxable gifts that use up part of your $1 million lifetime exemption, which in turn offsets your available estate tax exemption ($2 million if you were to die in 2008). Instead of saving in a 529 plan now, you can pay the college tuition bills directly to the school later on. Direct payments of tuition are excluded from the definition of a gift (the Section 2503(e) exclusion). But note that the direct payment option does not apply to the non-tuition categories of expense that can be paid from a 529 plan; that it requires you live long enough to see your grandchild off to college; and that payments received by the college from a grandparent can cause a financial-aid award to be rescinded. You'll have to coordinate your withdrawals with the parents. If you are using a 529 plan, it's a safe bet that the parents of your grandchild are using one too. When it comes time to pay for college, whose account is tapped first? You will need to have that discussion at an appropriate time to ensure that no one faces an unexpected tax bill. You may even consider transferring ownership of your 529 account to the parents of your grandchild at some point in the future, and leaving it up to them to make all decisions regarding the use of the account. Check to be sure that your 529 plan accepts requests to change account ownerï ¿ ½a few 529 plans do not. Your grandchild's college may ask about your 529 plan. The treatment of a 529 plan under the federal financial aid formula is discussed above. But some colleges have their own money to dole out to deserving students, and they may want to know about any money already set aside in 529 accounts before awarding a grant or scholarship to your grandchild. This is another reason to bring in the parents beforehand and discuss the best way to set up and use your 529 account. You may lose out on Medicaid. If you were ever to seek Medicaid assistance for the payment of medical and long-term care expenses, the state in which you live is likely to view any 529 accounts under your ownership as available assets that must first be spent on your care before Medicaid payments can begin. This is an issue that should be covered as part of your discussions with an attorney. Your heirs lose out on a "step-up" in tax basis. If you were to die, the mutual funds and similar investments included in your gross estate receive a tax basis step-up to current value. When these assets are sold by your heirs, they will not be subject to capital gains tax on any appreciation previous to your death. Since 529 accounts are excluded from your estate, there is no step-up in tax basis. In most instances, this won't make any difference as the distributions from the 529 plan will be entirely tax-free when used to pay the beneficiary's qualified higher education expenses. It will only be in the event of a non-qualified distribution that the lack of step-up will result in higher taxes. Posted August 1, 2008 Surveys show that many grandparents like the idea of using part of their wealth to help pay for their grandchildren's college expenses. Grandparents recognize not only the value of a college education but also how difficult it can be for grandchildren and their parents to pay or borrow their way through college as costs keep rising. We have an entire section of the site devoted to grandparents. Here are the essential reasons why grandparents should consider using 529 plans, along with a few cautions. Pros: Your money won't mess up your grandchild's income tax returns. The money in a 529 plan grows tax-deferred, so there are no interest, dividends, or capital-gains distributions to report on the child's income tax return. Most parents will love not having to worry about even filing tax returns for their children as the account grows through the years. They won't love it so much if you instead decide to make straight gifts to your grandchild, causing income tax headaches and a high tax bill, especially now that the abominable "kiddie tax" has been expanded to include college students up through the age of 23. Your money won't mess up your grandchild. Simply stated, the grandchild named as beneficiary on the 529 account has absolutely no rights to the money no matter how old he or she gets to be. The grandparent continues to have complete ownership and control for as long as he or she decides to keep the money in the 529 plan. How many times have you heard about a child making poor decisions because of the money that legally comes their way at the age of 18 or 21? In spite of the grandparents' best intentions, gifts of cash or stocks made while the child is young can become a parent's nightmare. That won't happen with a 529 plan. You will be reducing exposure to estate taxes. A 529 plan offers the only way for you to remove assets from your estate while retaining all of your ownership rights. Your contributions into the 529 plan are treated as completed gifts from you to the account beneficiary. Gifts are subject to a federal gift tax, but you have an annual exclusion of $12,000 to apply towards each beneficiary before running into taxable territory. (Even if your gifts do go over the annual exclusion amount, you pay the federal gift tax only after you exhaust your $1 million lifetime exemption.) A special rule available only with 529 plans allows to you accelerate five years worth of annual exclusions into one year. This means that you can put as much as $60,000 ($120,000 for a couple) into a 529 plan for each grandchild and stay within your gift-tax annual exclusion. Your college savings fund will grow faster. It grows faster because the 529 account is not subject to tax. End of story? Well, not quite. You should also know that 529 plans offer a variety of investment options. Many grandparents tend towards the more conservative options, which provide the greatest tax break when compared to their taxable counterparts. Many experts are predicting that income tax rates will be increasing regardless of who wins the upcoming presidential election, but 529 plans will assuredly retain their tax-favored status. You may be eligible for a state income tax break. Take a look at the tax rules in the state you live in. Are you able to deduct on your state income tax return the contributions you make to the in-state 529 plan? Thirty-five states (including D.C.) offer a deduction or state tax credit for in-state contributions. Seven states (AZ, KS, ME, MN, MO, MT and PA) offer a break when using either the in-state or an out-of-state 529 plan. It's unlikely your state gives you dollars towards any other type of college investment. You can change your mind. As the owner of the 529 account, you determine when to take a withdrawal, how much to withdraw, and what to use the money for. Of course, it's tax-free only if you withdraw for the designated beneficiary's qualified higher education expenses. Otherwise, you will owe tax on the earnings portion of the withdrawal and in most cases a federal 10% tax penalty on those earnings. The comfort of knowing the money is there for you in the event you change your mind about paying college expenses is very reassuring to many grandparents who resist making outright gifts. Of course, very few do change their minds, except perhaps to switch the beneficiary designation to a different family member if it turns out that the original beneficiary no longer needs the money for college. A 529 plan can be a great place for RMDs If you are taking required minimum distributions ("RMD") from your IRA, but have no spending needs beyond what you receive from other income sources, consider using the IRA money to fund 529 accounts for your grandchildren. The IRA distributions are still subject to income tax, but once in the 529 plan that money will grow tax-free and remain outside your estate as long as it is eventually used for qualified higher education expenses. Cons: You might be able to reduce your gross estate even more with other approaches. Perhaps you've already committed to an estate plan that applies your gift-tax annual exclusion to life insurance trusts, family limited partnerships, or other vehicles. Without a sufficient amount of unused annual exclusion, the contributions you make to a 529 plan for your grandchild can generate taxable gifts that use up part of your $1 million lifetime exemption, which in turn offsets your available estate tax exemption ($2 million if you were to die in 2008). Instead of saving in a 529 plan now, you can pay the college tuition bills directly to the school later on. Direct payments of tuition are excluded from the definition of a gift (the Section 2503(e) exclusion). But note that the direct payment option does not apply to the non-tuition categories of expense that can be paid from a 529 plan; that it requires you live long enough to see your grandchild off to college; and that payments received by the college from a grandparent can cause a financial-aid award to be rescinded. You'll have to coordinate your withdrawals with the parents. If you are using a 529 plan, it's a safe bet that the parents of your grandchild are using one too. When it comes time to pay for college, whose account is tapped first? You will need to have that discussion at an appropriate time to ensure that no one faces an unexpected tax bill. You may even consider transferring ownership of your 529 account to the parents of your grandchild at some point in the future, and leaving it up to them to make all decisions regarding the use of the account. Check to be sure that your 529 plan accepts requests to change account ownerï ¿ ½a few 529 plans do not. Your grandchild's college may ask about your 529 plan. The treatment of a 529 plan under the federal financial aid formula is discussed above. But some colleges have their own money to dole out to deserving students, and they may want to know about any money already set aside in 529 accounts before awarding a grant or scholarship to your grandchild. This is another reason to bring in the parents beforehand and discuss the best way to set up and use your 529 account. You may lose out on Medicaid. If you were ever to seek Medicaid assistance for the payment of medical and long-term care expenses, the state in which you live is likely to view any 529 accounts under your ownership as available assets that must first be spent on your care before Medicaid payments can begin. This is an issue that should be covered as part of your discussions with an attorney. Your heirs lose out on a "step-up" in tax basis. If you were to die, the mutual funds and similar investments included in your gross estate receive a tax basis step-up to current value. When these assets are sold by your heirs, they will not be subject to capital gains tax on any appreciation previous to your death. Since 529 accounts are excluded from your estate, there is no step-up in tax basis. In most instances, this won't make any difference as the distributions from the 529 plan will be entirely tax-free when used to pay the beneficiary's qualified higher education expenses. It will only be in the event of a non-qualified distribution that the lack of step-up will result in higher taxes. Posted August 1, 2008

Homework - 1062 Words

Alamo Draft house Case Study 1. Marketing analysts use market position maps to display visually the customers’ perceptions of a firm in relation to its competitors regarding two attributes. Prepare a market position map for Alamo Draft house using â€Å"food quality and â€Å"movie selection† as axes. Answer: The market position map for the Alamo Draft house using food quality and movie selection as axes is as follows: Big Small Movie Selection High Low Food Quality 2. Use the â€Å"Strategic Service Vision† framework to describe Alamo Draft house in terms of target market segments, service concept, operating strategy, and service delivery system. Answer: The table below illustrates the strategic service vision of Alamo Draft†¦show more content†¦This is a different category, which may not affect Alamos that much due to the difference in movie and service categories. Substitutes: People can prepare meals and stay at home and watch the second run movies, which may threat the business. However, some people like to be serviced and hang out while eating, watching movies, and having an alcoholic drink. In addition, Alamos holds events, which cannot be replaced at home. New Entrants: Industries like the ones mentioned in the new entrants section can enter the business and compete with Alamos. Such places already have the available large space to accommodate such service and compete. Power of Suppliers: The price of movies should stay fixed as Alamos play second run movies. Food prices may go up and down, but it is known and obvious to everyone, which will not affect the business much. However, the owner of the property may increase the rent of the place, which will affect the overall business and should reflect on higher prices on the menu or tickets. This may affect the number of customers coming to the place due to the increased prices. Power of Customers: Customers have power over the owner of Alamos because they can choose to go to alternative places. 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