<p>My parents set up a NY College Fund for both me and my younger sister when we were born. However, my parents want to use up all the money for both my sister and me when I go to Cornell in the fall because it doesn’t make any interest and it’s basically just sitting there. Do my parents need to change my sister’s fund’s beneficiary name (which is her name) to mine before they are allowed to use it for me?</p>
<p>To better use the money, your parents can put the amount in a Roth-IRA account in your or your sisters name. That way you accumulate way more interest, and you are not taxed/penalized for making withdrawels because it is for academic purposes. Hopefully that makes any sense.</p>