Account Basics
You can decide to change the Successor to someone else without a fee at any time.
Like most financial accounts, a successor may be changed at any time. This usually happens if the first successor passes away, but can be for any reason. If a beneficiary or their parent is not totally financially trustworthy, consider your Trust as a successor entity (the funds remain outside of your estate gifting limits). Your trustee will help decide when the money is disbursed.
Peggy chose her husband as the successor of their children’s accounts, but he recently passed away. She decides to choose her sister as the new account successor.
Isaac contributes to his granddaughter’s fund because his son (her father) is an irresponsible drunk most of the time. Isaac is concerned the son could abuse her 529 funds, so he designates his trust as the successor owner in this case. The responsible trustee will care for the granddaughter’s education expense needs.
No statement or example on this site should be considered a specific recommendation for your personal situation. Investing and tax strategies each carry significant risks. Examples herein may not apply to your situation. Please consult your estate attorney, tax advisor, or financial advisor for personal advice.