An Individual 529 allows you to maintain control over the account regardless of the beneficiary's age and you have the flexibility to change the beneficiary at any time.* A Custodial, or UGMA/UTMA 529, is an irrevocable gift to the minor and you may not change the beneficiary. Control of the account should must be transferred to the beneficiary as an adult.
*The new beneficiary must be an eligible family member of the original beneficiary to avoid federal income taxes and the 10% federal penalty. A family member is a person who has one of the following relationships with the original beneficiary: (1) son or daughter; (2) stepson or stepdaughter; (3) brother, sister, stepbrother, or stepsister; (4) father, mother, or an ancestor of either; (5) stepfather or stepmother; (6) son or daughter of a brother or sister; (7) brother or sister of a father or mother; (8) son or daughter-in-law, father or mother-in-law, brother or sister-in-law; (9) spouses of the individuals listed in (1)–(8) or the spouse of the beneficiary; and (10) any first cousin. Note that a new account will be required in order to change the beneficiary.