May a trust establish a CollegeAmerica account?
Yes. However, there may be legal considerations. It is the responsibility of the trustee of a trust to determine whether any provision of the trust is inconsistent with the requirements of Section 529. As a general matter, an investment in a 529 account may not be appropriate for many trusts. For an investor who wishes to eliminate the need for probate of assets set aside for the higher education of family members or friends, direct ownership of a CollegeAmerica account may be a better alternative than ownership of a CollegeAmerica account through a trust. A CollegeAmerica account is generally not an asset of the probate estate of the account owner upon death.
