An account created as an incentive to help parents and students save for education expenses. Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed.
Distributions from the account are not taxable if they’re used for qualified educational expenses. The account can remain open until the ‘minor’ is 30 years old. The minor is the primary and the custodian is the secondary. Only the custodian signs. An IRA beneficiary form is required.