When you invest in a college savings plan, you pay money into an investment account on behalf of a designated beneficiary. The assets of a 529 plan can be transferred tax-free to the 529 plan of another beneficiary as long as the new beneficiary is a "family member" of the beneficiary of the 529 plan from which the transfer was made. "Family members" include, among others, the intended beneficiary's brother or sister, unless age restrictions prevent transfers to an older sibling. It is a good idea to check with the 529 plan administrator, before making a transfer of assets to another beneficiary, to make sure that the transaction will be tax-free.

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