Yes, a change of beneficiary on a 529 plan account from a parent to a child is considered a gift.
While there aren't any income tax consequences to a beneficiary change on a 529 College Savings plan, there are potential gift tax consequences when the transfer is to a family member in a younger generation, as in this example. Transfers between siblings (or first cousins when grandparents own the plan) do not trigger gift tax. However, a transfer from a parent to a child does constitute a taxable gift if the value of the account at the time of the transfer is greater than the annual exclusion amount.
The drawback in the parent being the beneficiary until a child's college education begins is that while the contribution(s) may not be above the annual exclusion amount, the funds could later appreciate to a level that could be above the exclusion amount and trigger a gift tax return filing requirement.
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