Reply to How much to put into 529s?

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[quote=Anonymous][quote=Anonymous]Is the $400k your whole inheritance or is that just the intended (inherited) 529 funds?

If you’re inheriting $400k, I’d be concerned by front loading 529s, you’re effectively gifting your inheritance to your kids. In the event of a divorce, that money is gone to you. Why not just keep the bulk in your separate name? If you don’t commingle the funds, you can always use it for college but it’s yours otherwise if you divorce. [/quote]

You can always take the money out, though you have to pay a fee -- the account owner isn't the kid, the kid is the beneficiary.

FWIW, I (male) commingled an inheritance of about this size about 10 years ago, rather than keeping it separate, since I figured I hadn't done anything more to earn it than my wife had, and so if later wind up divorcing, there was no reason it should all go to me. If you aren't currently thinking that divorce seems likely, I would not expend any effort trying to figure out how best to cordon this money off in case of divorce, especially if it means potentially paying 15 percent (or more) capital gains taxes on assets you plan to sell to pay for college. [/quote]

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