Automatic Distribution to the Beneficiary Sample Clauses

Automatic Distribution to the Beneficiary. The Responsible Person is required to notify and direct the Trustee to make a distribution to the Beneficiary. Any amounts credited to the Education Account of the Beneficiary on the date on which the Beneficiary attains age 30 (unless the Beneficiary has special needs, as determined under regulations issued pursuant to Code Section 530(b)(1)) shall be distributed upon such direction of the Responsible Person within thirty (30) days after such date to the Beneficiary. (a) In order to protect the Beneficiary with special needs, if the Responsible Person does not notify the Trustee of this required distribution, the Trustee shall assume that the Beneficiary has not yet attained the age of 30 and/or the Beneficiary has special needs and no such required distribution need be made. Therefore, it is critically important that the Responsible Person notify the Trustee in the event that the Beneficiary reaches age 30 and does not have special needs so that penalty taxes for failure to distribute the account funds in accordance with Code Section 530 can be avoided.