PDA

View Full Version : Life Anyone ever opened up a 529 Collegebound fund for someone not in their family?


mlyonsd
04-20-2008, 11:19 AM
Recently very good friend's of ours had a daughter in law fall to cancer. She was only 27 with a two year old daughter.

She was in the hospital for quite a long time with her husband at her side. Because of both of them took an extended leave of absence from work you can only imagine the bills that piled up for such a young couple. The community came together pretty well on their behalf so I don't think the house will be lost but it will take time for him to get back on his feet.

Because of that my wife and I are planning on opening a 529 plan in their daughter's name. I was wondering if anyone had ever done this, and if there are any specific issues with doing this for someone outside the family. (i.e. taxes, trustee, etc).

Thanks in advance for any response.

Bill Lundberg
04-20-2008, 12:21 PM
I believe it has to go to a blood relative.

mikeyis4dcats.
04-20-2008, 01:51 PM
I believe it has to go to a blood relative.

.

alanm
04-20-2008, 02:01 PM
You're a good man mylonsd.

mlyonsd
04-20-2008, 03:43 PM
I believe it has to go to a blood relative.

I'm pretty sure you can start a 529 for anyone, even yourself. I'm just wondering if there is a smart way of going about it to protect all parties involved.

Rain Man
04-20-2008, 04:20 PM
That's a nice thing to do.

I know nothing about the accounts.

mlyonsd
04-21-2008, 07:06 AM
Shameless bump.

mikeyis4dcats.
04-21-2008, 09:09 AM
http://en.wikipedia.org/wiki/529_plan