I enjoyed your October 9th column in the Hartford Courant on 529 plans. I have two sons who have completed their college. My question is can I start a 529 plan now for each of them and then use it either for (1) postgraduate work if they choose to go back to school or (2)without penalty change the beneficiary on the account to their children if they have children? Thank you Alan

Terry Says:

The answer is YES!  And it’s a great idea.  You get to transfer some of your wealth each year.   (Currently you and your spouse can each gift $14,000 to each child — or if you’re trying to get money out of your estate now, can make a one-time gift of 5 years of the exemption, each, to each child for a 529 plan contribution!)   And the money gets to grow tax-free for college expenses.  And yes, if they don’ t go on to grad school, they can continue the program for their children to use eventually.