Learn How the Courts Handle Your Children’s Grandparent 529 Plans in Divorce
Grandparent 529 plans in divorce are not subject to equitable distribution unless they are in your name. Watch this video by Jean Mahserjian, one of our experienced Albany divorce attorneys to find out why.
It is not uncommon for our firm to be informed that our client’s parents or the other spouse’s parents have a college savings account for their grandchildren. Generally, these accounts are 529 plans, which are owned by the grandparents rather than by the grandchildren. These accounts are titled to the grandparent, while the grandchildren are listed as beneficiaries of the account. If the grandparent is the owner of a 529 plan, that account is not going to be divided in the action for divorce. It will not be addressed by the court because it belongs neither to either of the parties nor to any of the grandchildren.