An Important Reminder When Setting Up 529 Plans -- Name a Successor Owner

An Important Reminder When Setting Up 529 Plans -- Name a Successor Owner

By Melinda Gustafson Gervasi

May 27, 2024

Writer's need inspiration.  Combing the online "National Day Calendar" website gives me creative insight for blog posts, including todays.  Did you know that May 29th is National 529 Day -- a day to remind us of the ease and importance of saving for a child's post high school education. Funds in a 529 savings plan can be used to pay tuition for 4 and 2-year college programs as well as trade schools and accredited apprenticeship programs. 

Within weeks of their birth, I set up a 529 plan for each of my children.  Personally, our family used Wisconsin's EdVest program, which offers multiple tax savings.  When I set the forms up I did so with the eye of an estate planning and probate attorney.  While I was the account owner and my child was the beneficiary, I made certain to name my spouse as the Successor Owner of the account.  That way, should I die before the funds are used, my spouse would seamlessly take ownership of the funds. 

Whether it is saving for college, retirement, or a rainy day -- when you set up a new account it can be beneficial to ask yourself who you want to own the account at your death.  If you have an answer, work with the financial company where you have the asset to designate a successor owner.  If you do not, then you lose control over where those funds would go upon your death.

Author's children playing on a family trip to Sweden long ago, when she was still taller than her kids; 
image by M. Gustafson Gervasi, 2024

Remember that a blog is not legal advice, but a platform to spark thought and reflection.  Always seek the legal advice from an attorney licensed in your home state.  Thank you for reading, and be well.