Law Offices of Frye & Vazquez, P.L.
Call Today. 305-508-5749 | 877-421-5473

Using a trust for a 529 plan

Many estate owners in Florida have 529 savings accounts that are used to put away money for the education of their children or grandchildren. Some may wonder if they should create a trust to hold such an account.

In most cases, this is not needed. If the creator wants the account to pass to the intended person and not got through probate, that intended person can be named as the beneficiary. The original creator of the 529 remains the owner.

One situation in which the creator might want to use a trust is to prevent the beneficiary from using the funds for something other than education. Another situation is if the creator wants the funds to pass to a second beneficiary should the first beneficiary not have educational pursuits. The trust that owns the 529 plan can have language specifying that this is how the account should be used.

Trusts can have a number of different functions within an estate plan. Some might think they are only for wealthy estate owners, but this isn't true. For example, if there is a family member who has special needs and receives benefits from the government, that person might lose access to those benefits upon inheriting a large sum of money. However, the money could be placed in a trust to help the person with rent or other expenses without affecting those benefits. A trust could also be set up to protect money if an heir is likely to be irresponsible. Distributions could be tied to specific conditions, such as reaching a certain age. An attorney could help a client customize the terms of a trust.

No Comments

Leave a comment
Comment Information

What Our Clients Are Saying

  • I have known and worked with Austin Frye and his team since 2008. In that time he has helped serve both my business and personal legal planning needs. From guidance on reviewing and keeping shareholder and state documentation up to date... - Robert
  • It is difficult enough to cope with the emotional challenges of closing a parent's estate, and when you are also faced with the issue of your parents having insufficient documentation, and being remote from your siblings… - Zara L.
  • Austin Frye provided legal services to my father while alive and to his estate after his death; when showing the EP docs his firm prepared to other professionals (lawyers, financial advisors, accountants)… - Mark S
  • I've been a client of Austin Frye's for over 10 years. In that time, he's handled my estate/trust planning and asset protection as well as complicated business deals. - Leslie
  • Mr. Frye recently set up a complicated special needs trust for my son and, as usual, did a great job explaining it and in putting our minds at ease about our son's future well-being. - Dr. Howard
Read More...
  • NYSBA
  • Massachusetts Bar Association
  • The Florida Bar 1950
  • CFP
  • Florida Bar Elder Law Member
  • Academy Of Florida Elder Law Attorneys
  • Florida bar Business law Member
  • NAELA National Academy of Elder Law Attorneys, Inc.
Email Us For a Response

Contact Us For Personal Attention To Your Legal Matter

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location

Get In Touch With Us
20900 W. Dixie Highway
Miami, FL 33180

Toll Free: 877-421-5473
Phone: 305-508-5749
Map & Directions