IL 529 plans
Hi Terry, We currently have two 529 plans one for each grandchild. The first one has the owner as our daughter, for the grandson. They are twins, but adopted 10 months apart. Long story, but thank god they were finally reunited!
The second one has our daughter-in-laws name on it (as owner) for the grandaughter. I should say that they are a married couple. They now have another child.
My question is can these accounts be combined and used for all three? I have heard that any child in the family can utilize, if we can combine under all of their names. Which would be easier, or is it too late to do that?
Thanks you so much in advance for your help! I have listened to and folllowed you for years!
Terry Says
That’s full of interesting complications. What you should likely do is open a NEW account for the third grandchild — either in the name of the child’s mother or with yourself as custodian.
Eventually, assuming one grandchild gets scholarships or doesn’t go to college, another child in the same family can use the money. But that’s way down the road.
For now, keep the accounts separate, and try to make regular contributions on birthdays etc to each of them!
And remember, if you’re an Illinois resident, you get a tax deduction on state taxes each year for up to $10,000 of 529 plan contributions to BrightStarty.
