Tax Expert Noel Spencer: Coverdell Education Savings Account Beneficiary Change


Noel Spencer

Rather than rolling over money from one Coverdell Education Savings Account to another, may the designated beneficiary of the account be changed from one child to another without triggering a tax?
Yes, provided:
1. The terms of the particular trust or custodial account permit a change in designated beneficiaries (each trustee or custodian will control whether options like this one are available in the accounts they offer), and
2. The new designated beneficiary is a member of the previous designated beneficiary's family.
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