843 / Is an education savings account includable in an individual’s gross estate?

Upon the distribution of an education savings account on account of the death of the beneficiary, the amount of the education savings account is includable in the estate of the beneficiary, not the contributor. However, where a donor elects to have contributions prorated over a five year period for gift tax purposes (see Q 901) and dies during such period, the gross estate of the donor includes prorated contributions allocated to periods after the donor’s death.¹

See Q 901 for the gift tax treatment and Q 681 for the income tax treatment of education savings accounts.

1.    IRC §§ 530(d)(3), 529(c)(4).