Coverdell Education Savings Accounts (ESAs) require that all funds be distributed by the time the beneficiary reaches 30 years old. If the funds are not used for qualified educational expenses, they may be subject to taxes and penalties.

B is correct because funds must be distributed by age 30 unless transferred to another eligible family member.

A is incorrect as age 21 is not relevant for Coverdell ESAs.

C is incorrect because age 59 ½ applies to retirement accounts like IRAs.

D is incorrect because there is a distribution deadline for Coverdell accounts.