Feb 18 2025 16 mins
A Multigenerational 529, also known as a Dynasty 529 Plan, is a way of using one or more 529 plans to leave a legacy of education for future generations. A Dynasty 529 Plan can be set up by parents, grandparents, or other relatives.
With a Dynasty 529 Plan, high net-worth parents save more than is required for their children’s college education, meaning, they can continue to save in the plan even after their kids have graduated. A Dynasty 529 Plan benefits from years of tax-free growth before parents tap into it to pay for the costs of college.
However, passing on a 529 plan to future generations may result in gift taxes and generation-skipping transfer taxes. The 529 plans may also affect eligibility for need-based financial aid.
Depending on the number of descendants and increases in college costs, a Dynasty 529 Plan might not be enough to pay for the college costs of all future generations.