A couple things to note about a 529 account before you talk to an attorney:
- The account owner has total control of the 529 account. The beneficiary has no legal right to the funds inside a 529 account UNLESS it is specifically designated as an UGMA or an UTMA 529 account. If you are the listed beneficiary on the account you might want to contact the plan provider to ask whether the account for which you are listed as beneficiary - if this is the case - is in fact a UGMA or UTMA account.
- If the account is a true custodial 529 account, as specified above, and monies were withdrawn and not used for the benefit of the listed beneficiary of the account, and if you can prove it, then you should consult with legal counsel about your options.
VP, Research & Development
This information does not constitute tax advice and is provided for informational purposes only. Please consult your tax advisor, financial advisor, local taxing authority, and/or plan provider or sponsor for more information.