Over the next 20 years, one of the largest shifts of wealth in history will take place in the U.S. During this so-called “Great Wealth Transfer,” an estimated trillions of dollars will be passed down from Baby Boomers to their heirs, primarily Millennials and Gen Z. For many families, this transfer can be an opportunity to shape a lasting legacy.

If you’re a member of the Baby Boomer generation, you’ve probably spent decades building your financial security through hard work, saving (smart investments), and careful planning. Now, you may be thinking through how to pass along your resources in a way that will benefit your loved ones for years to come. The good news? You have options that allow you to remain in control, preserve your values, and invest in their futures. One of the most powerful tools available is a 529 education savings plan.

Simply put, education can change lives. By supporting your children’s and grandchildren’s education, you can provide not just financial support but also a tool for future success. This is where a 529 plan can come in.

A 529 education savings plan is a tax-advantaged investment account designed to help families save for future educational expenses. Today, 529 plans are more flexible than they used to be, and they’re not just for college tuition anymore. They can cover many other qualified expenses as well, including trade schools, K–12 tuition and expenses, apprenticeships, and even student loan repayment.

Here’s why a 529 plan with The Education Plan® can be a good fit if you’re looking to leave behind a legacy for your family. 

1. You Stay in Control

When you open a 529 account, you (not the beneficiary) are the account owner. This means you get to decide when and how the funds are used. If your grandchild isn’t ready for school or decides on a different path, the money stays under your control until you decide how it can be used. 

And, by designating a successor on your account, you can also ensure that ownership of the account transfers easily if you pass away or are no longer able to administer the account. This can help make sure that the education saving strategy you set up is continued into the future.

2. Flexibility for the Future

Sometimes life doesn’t go where you expect it to. If the first beneficiary on your account doesn’t need all of the funds, funds can be transferred to an eligible beneficiary . This might be another grandchild, great-grandchild, a niece/nephew, or even back to your own child who might want to pursue advanced degrees. This flexibility can give you peace of mind that your investment in future education will find a use.

3. Roth IRA Rollover Option

Thanks to recent legislative changes, unused funds in a 529 account can be rolled over into a Roth IRA for the beneficiary (subject to certain limits and conditions). This qualified expense makes a 529 plan even more powerful, ensuring that if your loved one doesn’t use all the funds for educational expenses, your contributions can support their long-term retirement security.
 

For many older Americans, the Great Wealth Transfer is about more than money. It’s about values. By choosing to invest part of your wealth in a 529 plan, you can show your family your commitment to their future. 

Consider the difference between leaving a lump sum inheritance versus leaving a dedicated education fund. An inheritance might be spent quickly or without a clear purpose, but a 529 account is earmarked for learning, training, and personal development. This can help ensure that yours is a lasting legacy.

In addition to flexibility and control, 529 plans also offer significant tax benefits. Contributions grow tax-deferred, and withdrawals for qualified education expenses are tax-free. And if you are a New Mexico resident, all contributions to a 529 account with The Education Plan are deductible from New Mexico state taxable income each year. 

For those thinking about estate planning, 529 plans offer another advantage: contributions are considered completed gifts for tax purposes, yet you, as the account owner, maintain control. This unique balance helps reduce your taxable estate while keeping you in charge of the funds. You can even “superfund” a 529 by making five years’ worth of contributions at once. This can be an especially appealing option for grandparents who want to make a substantial impact.
 

Think about the legacy you want to leave. A 529 account is more than a savings tool; it’s a proud statement to your family members that you believe in them and in their futures. It encourages your children and grandchildren to pursue their goals with confidence, knowing they have your support even if you can’t be there with them.

Imagine the relief your granddaughter might feel when she graduates from college without student loan debt. Or the pride your grandson might experience as he completes his apprenticeship program without financial barriers. These stories can help define your legacy.

Opening a 529 account with The Education Plan takes just 15 minutes, and you can start the account with as little as $1. 

If you’re already thinking about your estate plans, now may be the perfect time to incorporate a 529 strategy. Not only does it provide peace of mind for you, but it also creates a gift that keeps on giving: knowledge, opportunity, and freedom for future generations.

This information is for general educational purposes and should not be considered financial advice or tax advice. We recommend consulting with a tax professional or financial advisor for personalized guidance.