Another advantage of VEST is that the money can be used at any accredited institution of higher learning in the United States as well at many foreign institutions. The VPEP program is specifically designed for use at Virginia schools. Another VEST plus is it can be used for graduate as well as undergraduate expenses. The pre-paid VPEP plan is limited to undergraduate school. It has the opportunity for higher rates of return, because participants can choose the type of investment and participate in a market rate of return, he said.
Account holders control the money and can transfer the money to someone else in the family.
Rules say they can't switch it to a cousin. Also, a 529 can double as an estate planning tool, Cram said. It's the only place in the IRS that has a provision in which the money is not counted as part of a person's total estate.