Common use of DESIGNATING A BENEFICIARY Clause in Contracts

DESIGNATING A BENEFICIARY. Who May Be a Program Beneficiary? An individual with a valid Social Security number or a taxpayer identification number, including the Account Owner, can be a Beneficiary. A Beneficiary can be of any age and need not be a resident of Illinois. Each Account may have only one Beneficiary, but different Account Owners may establish different Accounts for the same Beneficiary, provided that the total balances in such Accounts, and all other accounts in other Illinois Section 529 Programs, do not exceed the Maximum Account Balance. An Account Owner may name himself or herself as the Beneficiary. If an Account is established by a state or local government (or agency or instrumentality thereof) or an organization described in Section 501(c)(3) of the Code as part of a scholarship program operated by such government or organization, the Beneficiary is not required to be identified on the Enrollment Form at the time the Account is established. Such government or organization must designate the Beneficiary prior to any distributions for Federal Qualified Higher Education Expenses from the Account. If the source of Contributions to an Account was a state UGMA or UTMA account, the Beneficiary of the Account must be the UGMA/UTMA beneficiary and may not be changed until the Beneficiary attains the legal age necessary to control the UGMA or UTMA assets and becomes the Account Owner. Do I Have to Be Related to the Beneficiary? When you establish an Account, you do not have to be related to the Beneficiary. However, if you change the Beneficiary in the future, the new Beneficiary must be a Member of the Family of the current Beneficiary in order to avoid potentially adverse tax consequences.

DESIGNATING A BENEFICIARY. Who May Be a Program Beneficiary? An individual with a valid Social Security number or a taxpayer identification number, including the Account Owner, can be a Beneficiary. A Beneficiary can be of any age and need not be a resident of Illinois. Each Account may have only one designated Beneficiary, but different Account Owners may establish different Accounts for the same Beneficiary, provided that the total balances in such Accounts, and all other accounts in other Illinois Section 529 Programs, including any Illinois First Steps account, do not exceed the Maximum Account Balance. An Account Owner may also name himself or herself as the Beneficiary. If an Account is established by a state State or local government (or agency or instrumentality thereof) or an organization described in Section 501(c)(3) of the Code as part of a scholarship program operated by such government or organization, the Beneficiary is not required to be identified on the Enrollment Form at the time the Account is established. Such government or organization must designate the Beneficiary prior to any distributions for Federal Qualified Higher Education Expenses from the Account. If the source of Contributions to an Account was a state UGMA or UTMA account, the Beneficiary of the Account must be the UGMA/UTMA beneficiary and may not be changed until the Beneficiary minor attains the legal age necessary to control the UGMA or UTMA assets and becomes the Account Ownerassets. Do I Have to Be Related to the Beneficiary? When you establish an Account, you do not have to be related to the Beneficiary. However, if you change the Beneficiary in the future, the new Beneficiary must be a Member of the Family of the current Beneficiary in order to avoid potentially adverse tax consequences.

DESIGNATING A BENEFICIARY. Who May Be a Program Beneficiary? An individual with a valid Social Security number or a taxpayer identification number, including the Account Owner, can be a Beneficiary. A Beneficiary can be of any age and need not be a resident of Illinois. Each Account may have only one designated Beneficiary, but different Account Owners may establish different Accounts for the same Beneficiary, provided that the total balances in such Accounts, and all other accounts in other Illinois Section 529 Programs, do not exceed the Maximum Account Balance. An Account Owner may also name himself or herself as the Beneficiary. If an Account is established by a state State or local government (or agency or instrumentality thereof) or an organization described in Section 501(c)(3) of the Code as part of a scholarship program operated by such government or organization, the Beneficiary is not required to be identified on the Enrollment Form at the time the Account is established. Such government or organization must designate the Beneficiary prior to any distributions for Federal Qualified Higher Education Expenses from the Account. If the source of Contributions to an Account was a state UGMA or UTMA account, the Beneficiary of the Account must be the UGMA/UTMA beneficiary and may not be changed until the Beneficiary minor attains the legal age necessary to control the UGMA or UTMA assets and becomes the Account Ownerassets. Do I Have to Be Related to the Beneficiary? When you establish an Account, you do not have to be related to the Beneficiary. However, if you change the Beneficiary in the future, the new Beneficiary must be a Member of the Family of the current Beneficiary in order to avoid potentially adverse tax consequences.