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| 529 plans have one owner (ex. parent, grandparent, etc.) and one beneficiary (ex. child). If the child does not attend college, the owner can appoint a new beneficiary to an eligible family member of the previous beneficiary (as defined by the IRS). |
| Eligible family members currently include: children, stepchildren, siblings, stepsiblings, parents, stepparents, spouse, niece/nephew, in-laws, biological aunts, uncles, and first cousins. Additionally, the current owner can name any successor owner in case of their demise. |
| For financial aid purposes, funds in a 529 plan are generally treated as assets belonging to the owner, not the beneficiary. However, the assets may be considered to be the child’s if he is considered an independent student. Independent student criteria generally includes: emancipated minors, orphans, war veteran, age 24 by the end of the school year, in graduate school, married or has dependents. |
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