529 college savings plans are typically thought of as plans used by parents of young children as a vehicle for college savings, as well as qualified education expenses, which include tuition and fees, books, room and board, computers, and more. The funds can also be used for tuition at eligible public, private and religious K-12 schools, up to $10,000 per year, per beneficiary. However, they also can play a significant role as part of an individual’s estate plan.

Generally, a 529 account is set up for a child at a young age in order to help defray the eventual astronomical cost of secondary education, minimize the need for student loans and maximize the tax-free earnings on the account. As of 2023, individuals can contribute up to $17,000 annually ($34,000 for a married couple) for each beneficiary, without filing a gift tax return. Additional income tax benefits are discussed below.