High-net-worth clients are in demand these days and are being targeted by some unlikely sources. Associated most with separately managed accounts and hedge funds, affluent investors are now being courted by 529 plan sponsors.

Sponsors are now promoting the vehicle, primarily known as a college savings tool, as a tax-efficient way the wealthy can transfer a portion of their estate to their heirs. The big bucks of high-net-worth clients could help heal some of the major problems the 529 industry has been facing as well, such as low account balances and profitability issues.

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