Here's why it's complex:
* Custodial Accounts (like UTMA/UGMA): These accounts typically transfer control to the beneficiary upon reaching the age of majority (usually 18 or 21, depending on the state). However, even after the transfer, the funds remain dedicated to education. The beneficiary might make poor financial choices, but the parent generally loses direct management rights at the designated age.
* 529 Plans: These plans allow the beneficiary to gain control of the funds upon reaching the age of majority, which is usually 18. However, they can often continue to be used for education expenses even after that age, with the beneficiary managing the withdrawals (though many plans don't let the beneficiary change the beneficiary designation before a specified age). Parents may have some measure of indirect influence, but generally lose direct control.
* Trusts: Trusts can be significantly more complex. The age at which the beneficiary gains control is determined by the terms of the trust document, which can specify any age or even tie it to specific events (e.g., graduation, marriage).
* State Laws: State laws vary regarding the age of majority and the specific regulations for different types of education funds.
In short: You need to examine the legal documents governing the specific college education fund to determine when the parent loses management rights. The age of majority is a factor, but not the sole determinant.