It's nice to have some savings in case we do need them, but it creates an uneasy feeling that we are "trapping" money in an account we may never need. And I'm sure the information exists, but currently we have no idea what would happen to the account if our daughter passed away.

Because the program is unusual, it makes sense to have concerns. But saving early means that gains accumulate tax free over time. And you can use it for lots of expenses. FWIW, some info here on what happens in case of death thearc.org/resource/how...