Dd’s grandparents took out a coverdell for her. She is needing to use the money to pay for a car. Her grandparents want to become the beneficiary so that they take the tax hit and not her. Is this even possible?
http://fairmark.com/college/saving/coverdell/beneficiary.htm
found this info, but check with your bank.
So is this because the grandparents would pay less income tax on the distribution than your daughter?
How would such a distribution affect the taxability of grandparents’ social security?