As college tuition continues to skyrocket upward, Americans with young children attempt to deal with the rising costs. And, when you just had your third child, college costs are always on the mind. One important tool to deal with the costs is also an effective estate planning tool - a 529 savings plan.

 Section 529 of the Internal Revenue Code authorizes "qualified tuition programs" to be run by a state, a state agency, or certain eligible educational institutions. The funds placed into these accounts are invested, and returns on the investment are exempt from federal and state income taxation (when conditions on use of withdrawn funds are followed - if not, taxes and penalties apply). While the details of each plan differ, they are widely available - in every state plus the District of Columbia, an individual has access to a 529 plan to pursue a tax-advantaged path to saving for college.