529 Re-Reg Flashcards
What two individuals are on a 529 plan?
Participant and Beneficiary
Can a participant have a successor?
Participants may establish successor participants to inherit the assets when they pass.
What are the three types of 529’s?
Individual, UGMA/UTMA, and Trust.
What is an individual 529 plan?
Account owned by the participant for the benefit of the beneficiary.
Participant maintains control of the account and can change the beneficiary anytime.
Participants can only be changed when they die and have designated a successor participant to inherit the assets.
When a successor participant is not designated, the assets belong to the deceased participant’s estate.
What is an UGMA/UTMA (Custodial) 529 Plan?
The minor owns the account, and a custodian manages the account for the expressed benefit of the minor.
The minor cannot be changed as the assets belong to the minor, the custodian/participant can be changed due to death or resignation.
What is a Trust 529 Plan?
When a trust owns a 529 the trustee/s manages the account for the benefit of the student.
The trustee controls all contributions and/or withdrawals form the 529 plan.
The 529 account can be maintained to add or remove a trustee due to death, resignation or incapacitation.
The trustee has the power to change the student due to death of the student. (For any non-death related student transfers please refer to 529).
Re-Registering a 529 Individual Account when the participant is deceased?
If assets are probated, the legal representative must:
Submit 529 plan account application for the same state plan and list the same beneficiary
Or open account online for same state plan and beneficiary
Submit an LOI appointing a new participant
Submit a copy of the participant’s death certificate
Submit a certified copy of court appointment designating legal representative (Letters of Testamentary) dated within 90 days
Inheritance tax waiver, if required
Re-Registering a 529 Plan Individual w/ TOD when the participant is deceased?
The successor participant named on the individual TOD account inherits the assets. The successor participants:
Copy of the participant’s death certificate
LOI from successor participant authorizing transfer of the 529 plan account
529 plan account application for appropriate state plan if creating a new account
If transferring to an existing account 529 plan account must have same beneficiary and state plan
Inheritance tax waiver, if required
