Information Regarding Saving for a Child’s Future Education

This question frequently arises: Who controls the funds held in a Section 529 qualified tuition account? These accounts can become quite large, as they are limited only by the projected cost of a college education, and those costs will vary between state plans.  Some states base their maximums on the cost of an in-state, four-year education, but others use the cost of the most expensive schools in the U.S.—including graduate studies. Most have limits in excess of $200,000, and some can reach $475,000 or more.  Thus, it is only natural that those who fund an account would be concerned about who controls the account’s distributions.  This is especially true when grandparents or others are making contributions to an account that is limited only by gift-tax considerations. (more…)