Transferring ownership of 529 from grandparents to parent; anything to be aware of?

Parents Forum
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My parents opened a 529 when S23 was born, they’d like to transfer ownership to me (parent) as they (understandably) don’t want to handle all the housekeeping around dispersing the funds, that will commence this spring with making deposits and the first qualified educational expenses.

Here are the particulars to this situation:
It is a Nevada 529 plan via Vanguard; they live in a no-income tax state, I live in an income tax state.

We will not qualify for need based aid (wealthy, estranged second parent who will not contribute to college; it is what it is), but between a combination of merit scholarships and the 529 we can make this work.

It appears to me that an ownership transfer is straightforward and doing so will not affect anyone (grandparents, myself, S23) negatively financially, nor will the funds be diminished in some way by an ownership transfer.

Is there anything I am missing? Anything I need to be aware of, e.g. might I take a tax hit if this were to occur as I live in an income tax state, or is there any reason that the monies would be reduced in some way due to this change?

Thanks for any feedback anyone can provide here!

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@BelknapPoint perhaps you can comment or at least ask the right questions.

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There generally are no tax implications for any party for the funds that will be transferred. Prospectively, most states do not tax the earnings portion of a 529 distribution that is used for qualified expenses. And, if need-based financial aid is not in the picture, it shouldn’t make any difference who the actual owner of the account is when distributions are made. If you haven’t yet verified that the Nevada Vanguard plan allows the transfer of ownership (not all plans do), you should check on this first.

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If it is all online not sure why there is a need to transfer ownership. If you get your parents login you can just go online and manage the payment. I did this for my mother when she paid for S21s last bill with the 529 she had in his name. Pretty easy.

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