For accounts owned by the parent or student, it is typically best to withdraw 529 assets sooner rather than later to lock in the tax benefit. The future is uncertain, so if there are qualified expenses today, usually you'll want to reimburse those expenses to ensure you're taking advantage of those 529 benefits.
That said, I don't know your financial situation in detail. You should definitely reach out to the financial aid office of the beneficiary's school, though, to understand how their school will view the source of funds, and whether it will have an impact on their aid package.
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.