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Old 07-15-2007, 01:33 PM
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Can I assign any relative as a beneficiary for a 529 plan?

If my son has been awarded a full scholarship for higher college education, can I then assign my 529 Plan to any other relative?

Are there any restrictions to who can be the beneficiary?



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Old 01-18-2008, 05:35 PM
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Are there any restrictions to who can be the beneficiary?

A College Sense 529 account has the advantage of having "flexible beneficiary designations". This means that the 529 account balance can be transferred to a new beneficiary at any time as long as the beneficiary is a family member of the original beneficiary. A Family member is defined as being other siblings in the family, cousins,nieces or nephews.

All transfers to the beneficiaries or to other family members would be tax-free to the recipients.

If your relative meets the above designation, then clearly there would be no tax consequences for the transfer of the "529 Plan Account".

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