Succession Planning

CollegeInvest 529s create far-reaching benefits …

You choose and control the beneficiaries.

You, as the account owner, choose the beneficiary for your account, and you can change the beneficiary at any time (as long as they are members of the original beneficiary’s family – from their parents, to brothers-sisters, sons-daughters, aunts-uncles, nieces-nephews).¹

While there can only be one beneficiary to an account, you can have multiple accounts for multiple grandchildren.

If I die, what happens to the account?

Your 529 account will not terminate; it will simply continue under the new successor account owner you chose when you established the 529 account.

CollegeInvest 529 plans provide you the ability to name a designated successor in the case of your death. This successor can then extend the ‘lifetime’ of your savings plans and intentions to future generations.

What if the beneficiary dies before I do?

The account owner retains control of the account during its existence. You may name another beneficiary to that account¹, or you can withdraw the funds subject to taxes on the earnings of the account.

The earnings portion of the account would be taxable, but you won’t be charged with the 10 percent penalty for terminating the account upon the death of the beneficiary.

Why should I establish separate accounts for individual grandchildren?

Maintaining separate accounts keeps your intentions clear. If something were to happen to you, and all the funds you set aside to help all your grandchildren are in the name of just one grandchild, your children could face a difficult time attempting to resolve the ultimate disposition of the 529 funds.

With separate accounts, you can easily name the appropriate successor and beneficiary on each account and eliminate any confusion or discord in the event you die or become disabled.

A word of caution

Estate , gift, and generation-skipping tax issues arising in connection with 529 Plans can be quite complicated. You and the Beneficiary should consult with a qualified tax advisor or specialist regarding these issues and the specific application of these rules to their particular circumstances.

 ¹ Restrictions apply. Please see the Plan Disclosure Statements.

Important Considerations

To learn about CollegeInvest’s 529 program, its objectives, risks, charges, expenses, limitations, restrictions and qualifications regarding the Plans’ benefits and potential tax advantages, please read and consider carefully the Program Disclosure Statements (PDS) available at www.collegeinvest.org before investing. Also, check with your or your beneficiary’s home state to learn if it offers tax or other benefits for investing in its own plan. Administered and issued by CollegeInvest.

CollegeInvest and the CollegeInvest logo are registered trademarks of CollegeInvest.