Contributions to your 529 plans are considered “completed gifts” to the beneficiary.

This federal rule means the current 529 assets and all future earnings are excluded from the owner’s taxable estate.

As the account owner, you can still name and change account beneficiaries, choose investments, and control all withdrawals. The owner remains in control of the account, a unique feature among gifting strategies. However, the account value will be included in the estate of the designated 529 account beneficiary.