Last week many states celebrated "529 Day" on May, 29 in order to encourage families to open and fund the special accounts known as 529 plans. It seems that many families and individuals still haven't taken advantage of a 529 Plan.
The name comes from IRS Code however the original idea came from a northern state that was working on the dilemma of rising costs in tuition. So, eventually Congress passed legislation that was contained in the Small Business Job Protection Act of 1996 allowing tax exemption to certain state programs that qualified.
In a nut shell, the 529 Plan allows for 2019 contributions (gifts) totaling $15,000 per individual. For instance, each grandparent could contribute $15,000 annually per child and exclude these contributions from gift taxes. There is also a "5-Year Election" provision allowing a sum up to $75,000 in 2019 as long as you file an IRS Form 709.
When the grandchild is ready for higher education, these funds (hopefully having grown overtime) can be withdrawn tax free and spent on qualified higher education expenses.
Success in all your efforts,