The article discusses the benefits of 529 accounts created by grandparents for their grandchildren, emphasizing that these accounts do not impact financial aid eligibility, known as the 'grandparent advantage.' However, if the grandparents pass away, their 529 accounts transfer to heirs, which means these accounts will count as parental assets when calculating financial aid, potentially jeopardizing the advantage. The article also advises that beyond the grandparent advantage, other strategies can help mitigate college tuition costs, though it highlights the unpredictability of life expectancy as a limitation.
Many parents utilize 529 accounts for education expenses, but if grandparents set them up, these accounts won't affect children's financial aid eligibility, known as the 'grandparent advantage.'
Once a child's grandparent passes away, their 529 plan transfers to the heirs, meaning that it will impact financial aid assessments, possibly negating the grandparent advantage.
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