COLLEGE SAVINGS 101

Can grandparents open a 529? (Script)

06/20/2013

QUESTION:
Can grandparents open a 529?

Watch video

ANSWER:
In some families, grandparents are an important source for helping to fund a grandchild's college education. And even when grandparents don't have a lot of extra money, they may still wish to make small gifts towards a grandchild's college fund. 529 plans can be very attractive vehicles for grandparents. One way to go about it is for the grandparents to set up and maintain the account themselves, naming a grandchild as beneficiary. The grandparents can then later on change the beneficiary to another grandchild, including the original beneficiary's first cousin, if they decide they would like to do that. Another way for grandparents to help is by simply making contributions to the 529 plan set up by their grandchild's parents. This way they do not have to keep track of the account themselves, but they also lose the ability to make changes to it in the future. Grandparents must keep gift taxes and financial aid considerations in mind whenever they intend to make education-related gifts because those rules can get a bit tricky when the amount involved is significant. Please visit savingforcollege.com for more details about those issues.

Other recent questions

»Top 529 Plan Withdrawal Tips. (Video) (03/30/2017)
»What are the 3 biggest 529 plan myths? (Video) (03/17/2017)
»Does a 529 plan affect financial aid? (Video) (03/16/2017)
»How much does college cost? (Video) (03/15/2017)
»What Are The Top 7 Benefits Of 529 Plans? (Video) (03/14/2017)
»529s and Financial Aid (Video) (11/19/2014)
»What are the best ways to maximize the savings in my 529 plan? (Video) (10/14/2014)
»What are the steps involved in setting up a 529 account? (Video) (09/15/2014)
»What is the first step in getting started with a 529 plan? (Video) (09/05/2014)
»Coverdell ESA vs. 529 Plan: Which to choose? (Video) (07/15/2013)
»What is the best 529 plan for me? (Video) (07/10/2013)
»What happens to my 529 if my child gets a scholarship? (Video) (07/02/2013)
»Can grandparents open a 529? (Video) (06/20/2013)
»Do I have to use my own state's 529 plan? (Video) (06/12/2013)
»529 Plans: Tax Benefits of a 529 Plan (Video) (06/07/2013)
»What are the Pros & Cons of 529 plans? (Video) (05/30/2013)
»What is a 529 College Savings Plan? (Video) (05/21/2013)
»Expected addition to the the family (04/16/2013)
»Naming a successor to your 529 account (Video) (05/11/2012)
»Finding the Right Coverdell ESA (Video) (09/16/2011)
My College Savings

Help us personalize our site for you.

1. I am a ...
Please select an option.
2. My child is ...
Years Old
Please enter the age of your child.
3. I have a 529 plan for this child
Please select an option.
 

Reset email successfully sent.
Please check your inbox.

Close
page loadtime mark

Advertisement


close