I will be inheriting a portion of my father's trust. My child is in college now, and I contribute the full amount to the trust every year. Are there tax advantages to disperse proceeds from the trust directly to the 529 plan? Second question: Since my name is on the trust, can both of us (me and the trust) contribute $5000 each to the 529 plan?
You definitely need an estate lawyer and maybe a CPA. My estate lawyer was generally knowledgable about estate tax.
The gift tax exclusion is $14,000 per year. Your 529 contributions are considered gifts. There is also something called a generation skipping transfer tax, the details of which I'm not familiar with.
The best advice would be dependent on how your father's will and trusts were set-up, and the rules of your state.
You should probably talk to an estate attorney (a lawyer duly licensed in your State) and a licensed tax adviser (EA/CPA licensed in your State) about this, as this may become tricky. It depends greatly on how the trust is defined and who are the beneficiaries.