529 hitch - college savings plan rules - Brief Article

Kiplinger's Personal Finance Magazine, August, 2001 by Melynda Dovel Wilcox

Well-meaning grandparents who set aside money in 529 college-savings plans for the grandchildren could be forced to revoke those accounts to pay for long-term-care expenses before medicaid kicks in.

It hasn't happened yet, says Joe Hurley of Savingforcollege.com. But Hurley predicts that states may have to change 529-plan rules so that family members can choose to make their contributions irrevocable, putting them out of medicaid's reach. If medicaid eligibility is a concern, grandma and grandpa should consider buying long-term-care insurance before helping out with college costs.