Legal Question in Wills and Trusts in Maryland

Uniform Gift to Minors-Legal Uses

Grandparents gave each of our three children money 6 years ago which my husband and I set up as UGMA with us as custodians. Now that we are trying to plan for their college educations (better late than never), we would like to move money to 529 plans. However, to increase the chance of qualifying for financial aid for college, we would like to give the money to the grandparents so that they can set up the three 529 accounts in their name with each child as beneficiary on one 529 account. Since we are clearly acting in their behalf, can we do this?


Asked on 11/21/02, 10:41 pm

1 Answer from Attorneys
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Uniform Gift to Minors-Legal Uses

I suggest you look closer at Maryland's 529 plan, it is not all that it is made out to be. In fact it rates in the lowest 10th percent in the Nation. Better financial options are available such as savings bonds. I can show you how to make better benefit with tax law over Maryland's 529 plan (unless such plan is properly reformed to be based upon credit hours purchased today for future use.)

My children's college funds do not include a 529 plan. Call me for further details.

G. Joseph Holthaus

(410) 799-9002

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Answered on 11/22/02, 2:38 am


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