New York (June 6, 2003) -- One of the unsung benefits of the new tax law is that it forges a new strategy for college savings -- gifting appreciated assets to children, according to financial planning experts.

The tax law slashes the top capital gains tax rate to 15 percent, but cuts even deeper for those in the lowest tax brackets, noted RIA's Federal Taxes Weekly Alert editor Bob Trinz. "Assuming there will be a gain when the child sells the stock and the child's other income is low, the child will pay an effective rate of just 5 percent on the gain," he noted. "If you have faith that the current tax scheme will be permanent, then it will be tax-free income."

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