TL;DR my question is: If I set up a 529 Savings account for my niece, is there any way that her parents could find out about or get early access to the account without my consent? As in, would the IRS or the entity with whom I open the account be obliged to inform the parents since the beneficiary is a minor?
My sister, who lives in the US, recently gave birth to a baby girl who is just the loveliest thing. I want to ensure that if my niece wants, she can attend university in ~18 years and leave school with minimal to no student debt (I assume she will go to school in the US).
I want to set up a 529 account and hopefully get it to build over the years, but I do not want my sister or my brother-in-law to know about it until my niece is a legal adult. Quite frankly my sister has never proven to be financially responsible, and I don't anticipate that changing anytime soon.Is there a way she could find out about her daughter being the beneficiary of a college savings fund? Could my sister be given access to the account without my consent since my niece is a minor? If so, are there alternative tax-friendly savings accounts for education purposes?
Edit: Thank you everyone for the responses, this has been quite informative.
Submitted October 15, 2022 at 11:47PM by an_sionnach_dubh https://ift.tt/E5SIXFf
