Yes, once the friend’s 529 has been liquidated and the funds have been gifted to OP’s child, they could then be used to open a new UTMA/custodial 529 owned by and for the benefit of OP’s child.
Yes, once the friend’s 529 has been liquidated and the funds have been gifted to OP’s child, they could then be used to open a new UTMA/custodial 529 owned by and for the benefit of OP’s child.