Key Takeaways
- If the account owner has passed away, ownership transfers to the named successor owner or to the estate if none is listed.
- If the beneficiary has passed away, the owner can name another eligible family member.
- The process usually involves contacting the plan administrator, submitting documents, and confirming new ownership or beneficiary details.
- Elayne can help locate accounts, prepare transfer forms, and track updates, but signatures must come from the family or executor.
If your loved one owned or was listed on a 529 college savings plan, and you have authority to act, you’ll need to update or transfer the account to keep it active and compliant. These plans are flexible, but ownership matters, and the process depends on whether your loved one was the account owner or beneficiary.
Step 1: Identify the 529 Account
Start by confirming whether the person had a 529 plan and what role they played.
- Owner: Controls the account and can change beneficiaries or withdraw funds
- Beneficiary: The student or family member the account is meant to support
Check:
- Financial institution statements
- Tax returns
- Employer or advisor records
If you’re unsure, the person’s financial advisor or accountant may know which state or institution manages the plan.
Step 2: Contact the Plan Administrator
Reach out to the 529 plan provider (listed on the account statement). They’ll explain the next steps and provide forms for ownership or beneficiary changes.
You’ll typically need to provide:
- Certified death certificate
- Proof of relationship (birth or marriage certificate, if requested)
- Successor owner or new beneficiary information (name, date of birth, address, Social Security number)
Step 3: Transfer or Update the Account
What happens next depends on who the person was:
- If they were the owner:
- The plan transfers to the successor owner if one is listed
- If no successor was named, the account may go through probate before being reassigned
- If they were the beneficiary:
- The owner can designate a new beneficiary, usually another family member (such as a sibling or cousin)
Once documents are approved, the plan administrator will issue confirmation that ownership or beneficiary information has been updated.
Step 4: Confirm and Keep Records
When the process is complete:
- Request written confirmation from the plan administrator
- Update login credentials and contact details
- Keep copies of all correspondence for the estate file
Final Thoughts
529 college savings accounts are designed to be flexible, and transferring them after a death can be straightforward, especially if a successor owner was already named.
Elayne can help by locating plans, preparing transfer documents, and tracking the process from start to finish. The final signatures and ownership updates, however, must come from the executor or next of kin.
FAQs
1. What happens if the 529 account owner dies?
If a successor owner was listed, the account automatically transfers to them. If not, it becomes part of the estate and may require probate.
2. What if the beneficiary (student) dies?
The account owner can change the beneficiary to another eligible family member.
3. Can the funds be withdrawn instead?
Yes, but non-education withdrawals may trigger taxes and penalties. It’s usually better to transfer ownership or change the beneficiary.
4. What documents are required?
A certified death certificate, account statements, proof of relationship, and successor or new beneficiary details.
5. Can Elayne do this for me?
Partially. Elayne can handle communication and paperwork prep, but signatures and final transfers must come from the survivor or executor.
6. Do 529 accounts ever expire?
No. The funds remain available for qualified education expenses indefinitely.
*Disclaimer: This article is for informational purposes only and does not provide legal, medical, financial, or tax advice. Please consult with a licensed professional to address your specific situation.
