Mother-in-law Opened 529 for Kids

I believe if she opens the account then her contributions to it are tax deductible. If she just gives you the money to put into the 529 account that you opened for them then her contributions are not tax deductible. It'll also be much easier for her to have the account in her name because she can link her bank accounts directly to it and have the money automatically deposited if she chooses. There's no way for her to do that with the account that's in your name. It all goes to your kids in the end so I would be thankful.

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What your MIL did was very generous. It's also not a bad idea to have more than one 529 account, since one might do better than the other - basically it's better not to have all your eggs in one basket. She might be trying to take advantage of tax deductions as well. I wish my MIL was in the position to be able to put aside savings for her grandchildrens' education.

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Before you get mad, you should understand that 529's are for your children.
They are the beneficiaries and it has nothing to do with whether or not you are capable of managing their financial future.
Also, it's different in different states, but it's possible that there are tax advantages for your in laws to invest in your kids' futures this way.
Many wealthy people I know have trusts and accounts for their grandkids and it's not about "managing" things for someone else. It's all a part of their own financial portfolios and investments.
They've done this for your children and I personally don't see a reason to be upset about it. Giving you a check isn't the same as investing in account they have established for the benefit of the kids.
I would be happy about this and contribute to your own 529 as you can.
I would rest easier knowing that your kids will have help with their educations when so many kids don't have anyone to contribute to that.

That's just my personal opinion.

Best wishes.

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My grandma opens an account for every child in our family, whether we already have one or not. it's just something she does... I don't think it's anything personal.

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Yes, you are a little crazy. My parents have an account for each of their grandchildren (in addition to the accounts we have started). Truthfully, you should be thankful that she is looking to help off-set the astronomical cost!

My grandparents started accounts for each of us when we were born. My parents were able to pay cash for our college educations (solid financial planning) and my sisters and I used "Nana's money" to pay for graduate school!

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I honestly would just be happy she has opened one for your kids, it's her money and she can allocate it in her own style, beats my MIL who gives zero to my child and I mean zero, zero attention, zero visits, zero money, zero zero zero. I would just be grateful. Other things that are obnoxious would tend to annoy me but not this one. Just saying this is her money and she has the right on how to do it her way-- the impt thing is it's going to your kids, that is the bottom line.

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It sounds like you have resentlment toward your MIL.

If anyone of our relatives showed interest in helping us fund our daughter's college, we would graciously say thank you. We have fully funded our 16 yr old on our own and it sure would have been nice if someone else was helping us out planning for $40,000-$70,000 worth of college expenses per year.

It's hard to fund college funds, takes a lot of discipline and unselfishness.

Suck it up and say thank you.

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Aww, dont be upset with G., she is probably just making life easier for herself by opening that account so she can continue to gift to it for birthdays and holidays. I doubt it has anything to do with trusting you with the money. Even if it does who cares, your kids are getting another account for when they are 18, it's all good?

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Do you have a reason to believe she is intentionally trying to undermine you? I would not have even thought it was done maliciously unless you have a background story to go along with it.

I think it was a wonderful gesture on her part and it gives her a way to continually contribute to her grandchildren. When the kids are ready to go to college they will have your 529 as well as hers. It has a greater impact than just saying "your grandmother contributed money a few years back."

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In the past I would have been upset about this too. I tried to control everything that relatives did for my children because I always took certain gestures as a personal attack against me or that someone was taking a jab at me. It could have been that they were or It could have been just something in my head that was not true.
I would let it go. If she wants them to have two accounts and this money is for their future all the better. This account would be her responsiblity and she is the one who is placing the money inside of it. Hopefully all that is needed is for her to transfer the money over to them one day and you don't have to be involved?
Meanwhile you can just concentrate on the account that you set up.

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My MIL would do it just because it would be easier to gift money on special occassions by putting the money in herself rather then writing a check, not to mention the tax break.
There's also a possibility that Grandma wants her money separate from yours for a reason. It may have nothing to do with your financial capabilities, it may be that she wants her grandchildren to know how much she gifted to her/him over the years.
Either way I see it as benefiting the same kids.

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Our daughter is in college right now, totally benefiting form her 529 account! Take it, Tuition with room and board right now for out of state is almost $60,000 per year..

It is for your children and your MIL gets the tax benefit..
This is one time, when she did not stir up trouble, but is actually helping..

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OK probably not what you want to hear but I would have the opposite reaction - I'd be thrilled if my mother in law did that! I guess i totally don' t see the harm or why you would be upset at all? The money is for the kids' college so who cares where it is/who controls it? Or are you worried that (depending on how old your kids are) they won't understand that as a gift? I guess I can't even imagine what's offensive about this...so I don't have any advice except maybe try to look at it through the eyes of someone else (like me) who thinks it sounds like a lovely, considerate, genuine gesture. Just hope she keeps adding to it! In this crazy world, I'd say take all the help you can get. I would imagine she meant it as as genuine expression of caring and love for her grandchildren and this likely has nothing to so with you or your savings accounts. I am usually good as seeing issues from all sides but frankly cannot fathom how a grandmother looking after her grandchildren's education can possibly be construed as anything to get upset about. Good luck!

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Money is money and any mutual funds that are funded by her 529 plan will grow for your kids. Really, I don't see why you would be upset. She gets a tax break on the money...maybe.

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While there are a lot of issues with handing over a check to a parent, I really think most parent/grandparents are interested in being a part of their grandchildren's lives.

My MIL handed checks to my SIL for sports and the checks were cashed, but he never entered the sports.

At least she is doing it.

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Sorry, but yes, I think you're off the mark! The more 529s your kids have -the better off they'll be! It's a lot easier for grandparents and anyone else wanting to contribute to a 529 to have the money deducted out of their paychecks automatically or other payments they receive. Sure, you could all be set up to contribute on the same one, but it's really no big deal. We have 529s for our kids and my FIL does as well. There's not a distrust issue -he just opens one for all of his grandkids and contributes to it, regardless of what the parents or other grandparents do. My father has his own account set up for my boys' college funds that he manages on his own as well. Just be glad she cares and wants to contribute to their futures.

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Maybe her bank advertised it, or offered some kind of deal for her to open it? Maybe she just didn't think of using yours? Who knows. My son's grandparents contribute to his 529 by sending money directly to the bank instead of sending me a check and I never thought to be offended. I don't think this is worth rocking the boat over.

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I understand how you're feeling (I'd probably feel the same way), but unless you want to start all kinds of drama I'd leave it be. The important thing is that she's doing something wonderful for your children. Thank her and forget about it.

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Yes you are acting crazy. She did a very generous thing for your children so why not appreciate it?? Maybe she thinks someday when shes long gone, her grandkids can do something with that money that they can always say is from her. It probably has nothing to do with you at all, so let it go.

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Wow, my first reaction was "what a wonderful thing."

I don't know your MIL, or anything about your relationship with her to have any context there, but in general, I don't see anything wrong or malicious in what she's doing for your kids. Like someone else said, perhaps she just wants your kids to be able to see *her* gift to them, instead of it just being lumped in with your funds.

My son's grandmother (his father and I are not together anymore), has a fund for my son, as well. She knows I'm quite responsible with my son's money, and I don't think there was even a consideration there, but I think it's just easier for her to have money automatically debited from her accounts and placed in his, than it would be for her to get the money to me. Honestly, I TRULY appreciate her doing this. It's such a wonderful gift and blessing for my son. And it's something I don't even have to think about, yet it's there for him.

I say be thankful and let it be. :)

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I AGREE with YOU. We opened a 529 and they made one deposit in 9 years into it with the rude discussion about making sure only my husband can manage it. They have since decided since the other two grandchildren(not ours) blew over $100,000 each they were not giving our child and money. They should be giving it to you all to put into the original 529.
And such a little amount will be gobbled up in fees.

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Try not to take it personal. She might not trust you, or she might just be a completely controlling person. Here's the deal. It won't hurt to have more then one account for each of them, and it won't hurt if she's controlling about money SHE is giving your kids. Its insulting, but let it go. Save your frustration for REAL issues, and it sounds to me that if this is bothering you its likely because there are lots of other real issues going on.

Best wishes. It sounds like she loves your kids and is investing in them quite generously! Some grandparents don't give a rip about their grandkids, so be thankful for what you get. :)

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Be thankful that your MIL is contributing to your children's future. Does it really matter who controls it? Besides, she probably wants your kids to know what she has gifted and cannot do that if the money is co-mingled. Thank her graciously and don't worry about the details of HER gift.

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Wow! Be thankful and leave it alone. As a "mimi" myself, I feel sure she did this out of love!

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I work in the Financial Industry and I see Grandparents open 529 accounts for their grandchildren all the time. If she makes herself the owner and manages it, she will be required to use her SS# on it and it will be linked with all her other assets and there's a good chance that she qualifies for a lower commission rate to buy these mutual funds. Don't take it personally, just be THANKFUL that she is investing in your childs future.
There is no federal tax deduction for contributions to 529 college savings plans (Uncle Sam's contribution is that earnings can be withdrawn tax free when used for qualifying college expenses). But the state of Michigan does allow state residents to deduct on state returns up to $5,000 ($10,000 on joint returns) of contributions to the Michigan 529 plan.

My mother did the same thing - opened a 529 for kids instead of just putting into the one we already had for them. I would have preferred it all in ours, but I am not going to say anything. For one thing, I am grateful that she is doing this at all. That is a GREAT gift for my children and I do not want to seem un-appreciative. (She puts $200 in each year each child for their birthday). Second, my friend wants to put money in for my children each year - into the 529 we already have. I found it is not so easy for her to just put money in. I could not figure out a way for her to do it electronically (and almost all bills are paid electronically these days). So she had to send me the check and have me do it, which was a little effort on my part. Because it involved "me", it took away the effort of "her doing something" for the kids. Anyway, I think you are reading way too much into it - just say thank you!