Legal Question in Wills and Trusts in Pennsylvania

This is not a probate, will, trust or estate question and I do not involve myself with 529 plans all that much. You may want to ask a consumer law attorney.

My understanding (and I don't know which plan your daughter is enrolled in - some are good, some are not so good) is that the money grows tax free and is to be used for the child's college. The terms of the plan may dictate where the child can go to college, depending on the plan. Otherwise, the child can be enrolled in any state's plan and can use the funds for any school, even one which is not in the state that governs the plan. While the plan may not limit where your daughter would attend school, I don't know if there are any preferences your ex-husband would have that might have a bearing. He may attach conditions on his own outside of the plan and nobody can control that.

Although the funds can be withdrawn by the owner of the fund (for example, where the child does not attend college), the back taxes are going to have to be paid on the increases to the fund. If your ex-husband wants to take the money out, he is therefore going to be hit with a tax penalty. There might also be in-state tax breaks in the state where the plan is located which may also have to be repaid.

Is your husband that much of an SOB that he would screw his own kid out of her college fund and be willing to take any tax hit?

You ask if your ex-father-in-law can overturn this. Unless your ex-husband is willing to sign it back over, I don't think so. Even though your ex-husband has money problems, funds in 529 plans are generally exempt from creditors. Each state has different exemptions, however, and I would need more information about the kinds of debts that he is and where he resides before I could advise as to whether the plan would be an exempt asset.