<p>We have 529 accounts for both kids. Both with the same amounts. We were paying out of pocket for our son (the older child) while he was in CC thinking to let the fund grow for when he moved to a 4 year school. He dropped out, went back and has dropped out again 
. Sad but not surprising as he has never enjoyed academics and has some learning disabilities that make school tough for him despite having a very high IQ. Our daughter (the younger child) has excellent scholarships plus some grants and a little bit in subsidized loans. Her 529 account is also currently untouched. But her plan is to go to medical school. If that happens we will transfer the 529 money into her name to help pay for it. (though if our son goes back to school or a vocational type training, which I think would suit him, then we would use the money on him). If she does not go to med or grad school we will pay off her loans. If there is money left we will probably pay the penalties and keep it. We are retired and not amazingly well off.</p>
<p>We put the money aside for education. If it is not used for that we can definitely use it. They will get what is left eventually anyway. :D</p>
<p>The legalities are different with a UGMA account. The ethics are a little more blurry. Probably a lot depends on what the expectations were and how/if they were communicated to the kids. Ours do not regard the 529 account money as theirs to do with what they want. I am not sure they are even aware of them. And of course we are not talking about anything like those $ numbers in our case.</p>