Gift tax is a tax charged to the giver of a gift to another person. There is an annual gift tax exclusion of $17,000 per recipient or $34,000 for married couples for 2023.
529 plans provide 5-year gift-tax front-loading, where a gift that is greater than the annual gift tax exclusion is treated as being given proportionately over a 5-year period. This allows contributors to give up to $85,000 per beneficiary as a lump sum contribution to the beneficiary’s 529 plans. It’s excluded from gift tax as long as the giver does not die before the end of the 5th year.
A grant is a form of aid that is often based on the student’s financial need.
Growth refers to the appreciation of an asset in value.
A growth fund is a collection of stocks that have the potential for growth in revenue or earnings. Growth stocks often have above-average prices compared with earnings because of the expectation that the earnings will increase.