529 Plans and Living Trusts


How should your 529 plan be titled if you have a revocable living trust. 529 plans can be tricky. Some allow you to name your trust as the owner, and this is typically recommended. If they don’t allow you to name a trust as owner, then many plans will at least allow you to name a backup owner. For the backup owner, you should name the trust if allowed. If that’s not allowed, then name someone who you trust to continue the plan for the benefit of the student/beneficiary. If trust ownership is not allowed, then it can get tricky. Work with your financial advisor for the best solution to keep this asset from flowing through probate.

For one particular company that I've worked with, I had to open the 529 in my name and then submit a form to transfer ownership to my living trust. It was an extra step, but it was very simple. It took me an extra 5-10 minutes is all.

Remember, if your living trust is the owner, and you become incapacitated, then your successor trustee can begin managing the account even prior to your death. That's a major advantage to having ownership by your trust.

Each plan and state is different, so do not take this as advice, but simply as a starting point in your coversations with your financial advisor, attorney, CPA, and 529 institution.

Mike Massey Law can help you with your Last Will & Testament, Living Trust, Durable Power of Attorney, Medical Power of Attorney, Living Will, HIPPA Release, Transfer on Death Deed, Cremation/Burial Wishes, Pre-Need Guardianship, Guardianship preference for Minor Children. Local Texas Attorney/Lawyer may be able to help you with estate planning. Call 512-757-9065 or Email: mike@atxwills.com



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