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Transfer of ownership of 529 account

I have 529 accounts for my grandchildren. I transferred ownership to the parents. What transaction do I use.

Best Answer

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    I assume that you've been keeping those Accounts in your own Quicken file and I assume that the money you've transferred into them have simply been accounted for as "transfers."  If that's the case then you've always treated these Accounts as "your" Accounts, similar to how you might account for one of your retirement Accounts.
    What is it that you're trying to achieve here?  If you're trying to eliminate the Accounts from you Quicken file then there's no single "transaction" that's going to do that, unless it happens that all the assets in the Accounts are cash.  In that case you could simply "spend" all the cash in the Accounts, offsetting that spending to some Category like "Gifts Given."  That would zero out the Accounts and then you could close them.
    If there are securities in the Accounts then you could enter pretend "sells" of the securities at their current fair market values, then "spend" all the cash again using a "Gifts Given" Category.
    There's other approaches you might take, too.

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    I assume that you've been keeping those Accounts in your own Quicken file and I assume that the money you've transferred into them have simply been accounted for as "transfers."  If that's the case then you've always treated these Accounts as "your" Accounts, similar to how you might account for one of your retirement Accounts.
    What is it that you're trying to achieve here?  If you're trying to eliminate the Accounts from you Quicken file then there's no single "transaction" that's going to do that, unless it happens that all the assets in the Accounts are cash.  In that case you could simply "spend" all the cash in the Accounts, offsetting that spending to some Category like "Gifts Given."  That would zero out the Accounts and then you could close them.
    If there are securities in the Accounts then you could enter pretend "sells" of the securities at their current fair market values, then "spend" all the cash again using a "Gifts Given" Category.
    There's other approaches you might take, too.

  • andyc
    andyc Member
    Thank you Tom. There are securities in the account. The second approach to convert all the securities in to cash first seems to be the easiest. I can do a sell all then transfer all the cash out to the parents. No actual cash will move. Thanks again.
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