THE SAUGUS ADVOCATE – FRIDAy, MAy 23, 2025 Page 19 BEACON | FROM PAGE 18 ADDITIVES (H 113) – Would establish a 16-member Commission to Study the Safety of Food and Food Additives to investigate the health impacts of certain foods and food additives and propose policy and regulatory changes to enhance food safety in Massachusetts. The commission would include medical professionals, dietitians, food BEACON | SEE PAGE 20 PATRIOTS | FROM PAGE 4 Dan Cameron Missing in Pa529 PLANS AS AN ESTATE PLANNING VEHICLE O ne of the advantages of a Section 529 plan is that to the extent a parent or grandparent funds it, the monies then held in the 529 plan are not included in the estate of the parent or grandparent. Furthermore, the parent or grandparent would still maintain control over the account itself if they are the named Custodian of the account. In fact, the parent or grandparent has the right to ask for a return of the funds contributed to the 529 plan. A parent or grandparent can gift up to $19,000 per year per person without reducing the maximum federal estate tax/gift tax exemption amount (currently $13.9million for each taxpayer). Some parents or grandparents may be reluctant to make an irrevocable gift because they might feel they might need that money someday. A husband and wife can “split gift” and transfer $38,000 per year per individual. The $38,000 qualifies for the annual “tax free” per donee gift. Keep in mind Massachusetts does not have a gift tax. A taxpayer can gift as much as he or she wants to a child or grandchild and not be concerned about a Massachusetts gift tax. Therefore, a parent or grandparent can subsequently change his or her mind and take the money back. If that were to happen, then the monies taken back fall back into the “gross” estate of the parent or grandparent. In addition, any withdrawal not used for the beneficiary’s qualified education expenses subjects the “earnings” to income tax and a 10% penalty. One great feature of a 529 plan is that a parent or grandparent can “frontload” the contributions by gifting 5 years worth of the $19,000/donee/year taxfree gift exclusion amount, or $95,000, into a 529 plan for one son or grandson. If both parents or grandparents join in on the gift, the amount that can be funded each year into a 529 plan for each son or grandson then jumps to $190,000. If the parent or grandparent dies prior to the end of the five-year period, the contributions to the 529 plan allocated to the years after death would be included in their “gross” estate. The power of a Section 529 plan cannot be overestimated. Even if the estate is nowhere near the federal exemption amount, one might still stand to save a lot of money in Massachusetts estate taxes. The filing threshold is now $2million for taxpayers dying in Massachusetts on or after January 1, 2023. If someone were to die having a “gross” estate of $1,999,000, having previously gifted away to children and/or grandchildren to establish 529 plans $760,000 ($190,000 to each of 4 children and/ or grandchildren), an estate tax return would not have to be filed because you do not have to add back these “non taxable” gifts to the “gross” estate to determine if you have met the $2million threshold for filing a Massachusetts estate tax return. Therefore, you would not even have to pay any estate tax on the $1,999,000 remaining in your estate. In fact, even taxable gifts (i.e. gifts over the $19,000 per donee tax free gifts) do not have to be added back to your gross estate upon your death to determine if your gross estate exceeds $2million. The $19,000 annual gift allowance is simply not a “taxable” gift. It is a “tax free” gift and for federal estate tax purposes and does not reduce your $13.9million federal estate tax exemption. Once a Massachusetts estate tax return is required to be filed, only the excess over $2million is actually subject to tax as a result of the $199,600 tax credit provided by the state. That number is the Massachusetts estate tax on the first $2million of taxable estate. Joseph D. Ca taldo is an esta te planning/elder law a ttorney,Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation. cific: Mr. Irving Cameron, father, received word that his son is missing in action in the Pacific area. Cameron was aboard a destroyer off Okinawa. His brother, Irving Jr., is a prisoner of war in Germany. Roy Buckless Survives L.S.T. Sinking: Seaman 1st Class Ray Buckless, 17, youngest of seven brothers in the armed forces, is home on leave with his parents, Mr. and Mrs. George Buckless, after surviving the sinking of the LST 447 off Okinawa last month. He entered the Navy on his 17th birthday. Brothers Killed in Italy: Two Saugus brothers, PFC John Kasabuski, 21, and SSgt. Walter Kasabuski, 24, of 49 Collins Ave., were mortally wounded the same day during the last month of hostilities in Italy. John was killed instantly and Walter died April 27. War Prisoner Two Years – Liberated: After two years in a German prison camp and still incapacitated by leg wounds sustained at the storming of Salerno in 1943, Pfc. Elbert J. Vickers, 25, son of Mr. and Mrs. Fred Vickers, 37 Walden Pond Ave., cabled his parents and told them “not to worry and that he was well.” Pvt. Egan Home from German Prison Camp: Pfc. William Egan, 15 Baker St., taken prisoner on Dec. 19, is home on leave. His entire regiment was either killed or captured during the Battle of the Bulge. Prisoners marched for ten days with only one loaf of bread and a small amount of water to drink. Most of them suffered from frozen feet before the march was over. Pfc. MacCrae Killed by Bomb: Pfc. William MacCrae, 21, son of Mr. and Mrs. Fred MacCrae, of 66 Winter St., a prisoner of war since Nov. 1943, met his death in Stalag 4B on March 31 when American bombers accidentally blasted the camp, his parents have been informed. Sgt. Caffarella War Prisoner: Sgt. Edward Caffarella of 185 Essex St., a prisoner of war for four months, is home on a 60-days leave before reporting for a further assignment. Lt. McCullough Lost in Action over France: One of Greater Lynn’s outstanding airmen, First Lt. Phillip McCullough, 27, of Saugus Center, pilot of a fighter P-47 Thunderbolt and holder of the Air Medal and Oak Leaf Cluster, is missing in action after a raid over France March 20. His parents have been notified by the War Department. Military Service for Lt. Daniels: Full military honors were held Wednesday for Lt. Laurence P. Daniels, U.S.M.C.R., who was killed in a plane crash on April 19. Edward Dow and John Penney Honored: Tech Fifth Grade Edward Dow, 52 Adams Ave., has been awarded the Purple Heart for wounds received in Bougainville. Lt. Jack Penney, son of Mr. and Mrs. Henry J. Penney, of 125 Howard St., has been awarded a Purple Heart and a gold Leaf Cluster for several injuries received at Normandy Beach. Four Saugus Brothers in Service: Four sons of Mr. and Mrs. Bartholomew Ciampa of 53 Bristow St. are serving in the armed forces: Tec. Sgt. James Ciamps, 32, Michael, 28, Rocco, 25, and Christie Ciampa. Pvt. William Hobbs Killed in Italy: Pfc. William L. Hobbs, 35, son of Mr. and Mrs. Lewis Hobbs, 46 Chestnut St., East Saugus, was killed in action somewhere in Italy on May 15. His parents were informed by the War Department last week. Pfc. H. Joseph Berrett Killed in Action: Pfc. Harold J. Berrett, 20, son of John and the late Alice Berrett, of 8 Wilson St., has been killed in action in Burma, his father was informed Monday in a telegram from the War Department. Five Sons of Mr. and Mrs. Charles Ward in Service: Mr. and Mrs. Charles Ward of 529 Lincoln Avenue have five sons in the service. They are Robie, Kenneth, Seldon, Russell and Charles Ward, Jr. Corp. Biffin Finds Chum in Prison Camp: His spirit low from lack of proper food in a German prisoner of war camp, Theodore P. Biffin, of 54 Jasper St., was asked one dark night for a match by a companion who inquired, “Where are you from, buddy?” Biffin replied, “From a small town in Massachusetts called Saugus.” Someone said, “Me too,” and it was Sgt. Walter B. Wetmore, of 74 Main St., Saugus, Mass.
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