Section 529 Plans were created under the Small Business Job Protection Act of 1996 for the purpose of allowing people a tax advantaged way to save for the higher education expenses of a beneficiary.

At a high level, the account is owned by one person, and a successor owner is also named. Usually, these are parents of a child who is the beneficiary of the account, however anyone can own a 529 plan for the benefit of a child. Anyone can make a contribution to the account for the beneficiary.

Deposits into 529 plans are considered gifts.