If your child gets a scholarship, you should get his 529 plan
I recently came across a USA Today article about 529 accounts and thought it was rather interesting. It answers a question that I must say has crossed my mind as a mother with a seven and nine year old. In fact, this article has answered two questions for me that I will be passing along to my clients who have young kids.
The first question I find myself thinking about is whether it is more important to fund a 529 account for my kids or fund retirement accounts for my husband and myself? The second question that has crossed my mind is if my husband and I are fortunate enough that our kids receive full scholarships to college, what happens to their 529 accounts?
When dealing with these types of questions, especially with 529 accounts or retirement accounts, we always advise that you consult a financial planner. However, with that said, it is always important that you also consult an estate planning attorney to determine how these plans may affect your estate if anything should happen to you. I do not necessarily mean only if death occurs, but it is important that you understand what could happen if you ever need a guardianship, if your child needs a guardianship, or what happens if you get divorced. It is also important to understand what happens with these types of assets if you die. How do these assets effect probate, or do they?
It is always important when you have questions such as these that you speak with a qualified financial planner and estate planning attorney.