- 1). Contact the brokerage firm managing your 529 account and let them know you want to change the account beneficiary.
- 2). Fill out the change beneficiary paperwork for the brokerage firm. Most companies will give you the option to complete the form online or through a faxed document. You will need to list the name and Social Security number of the new beneficiary to make the switch.
- 3). List your family relation to the new beneficiary on the change beneficiary form. To avoid taxes, the new beneficiary must be a qualifying family member. This includes any of the following: child, grandchild, stepchild, brother, sister, stepbrother, stepsister, nephew, niece, father, mother, grandfather, grandmother, stepfather, stepmother, uncles, aunt, first cousin, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law.
- 4). Consult an estate tax lawyer if you have gifted over $5 million during your lifetime. The 529 transfer may be charged gift taxes and generation-skipping transfer taxes. The 529 transfer will be tax-free if you have not gifted over the $5 million exemption.
previous post