Transfer of ownership of 529 account
Posted: Thu Jul 02, 2026 10:53 am
Would transfer of ownership of a 529 account (US college savings account) to the beneficiary, be considered as a Gift for a German Tax resident (account owner), even if withdrawals under Account owners name and spending the same money for kids tuition and living expense would not be considered a gift.
(scenario: withdrawal from 529 under account owner would be subject to Capital gains tax under the account owner, but if the account owner is the beneficiary, they pay the tax and not the owner, If I understand correctly; hence the transfer of ownership as suggested by the 529 Administrator).
I would appreciate any advice or help in this process,
Thanks,
Sx4
(scenario: withdrawal from 529 under account owner would be subject to Capital gains tax under the account owner, but if the account owner is the beneficiary, they pay the tax and not the owner, If I understand correctly; hence the transfer of ownership as suggested by the 529 Administrator).
I would appreciate any advice or help in this process,
Thanks,
Sx4