The younger a child is when you contribute to their 529 plan, the longer the account has to potentially benefit from compound growth. In 2023, individuals can contribute up to $17,000 per year (and couples up to $34,000 per year) without eating into their lifetime gift and estate tax exemption.
For older kids or grandchildren, you could also make tuition payments directly to the school. A benefit of doing this is that direct tuition payments are exempt from the gift tax, which may not be the case with 529 contributions beyond the annual gift tax exclusion.
If you’d like more information about this tactic, reach out to us. We’d be happy to discuss it with you.