A CESA gives you access to many more fund choices than does a 529. Also, the fees associated with a CESA may be lower than many 529s. I would not say that there is no point in having one if the K-12 provision goes away.
As an aside, it may make sense to max up the availalbe Perkins and Stafford loans--why--because rules essentially wipe out such loans if at end of the road the young man is unable to enter job market--and other rules provide for forgivness if he ente
The UGMA assets belong to the grandson, so his tax return will account for the gain. He will most likely need his own tax return done, but it will be affected by his parents' retun (due to the kiddie tax).
The GPs assets make no sense to include. Its not rocket science to make a UGMA disappear from the counted assets and with a bit of thinking one can do so w/o apparent violation of applicable laws. Now if one times such a move poorly then the income
