Just suppose a Trust owns multiple 529s The Trust is supporting the education of 42 beneficiaries, all descendents of the nieces and nephews of a deceased couple. So lots of second cousins. Most beneficiaires clean out there available funds, but a few have left money unspent. What happens if the Trust transfers funds from one nieces grandchild to a different nieces grandchild (both beneficiaries, but second cousins not first)? Does it make sense to make transfers up the family tree back to grandma and her sister and then to the grandchild?