Utah Educational Savings Plan

Program Participation

Who can open a Utah Educational Savings Plan (UESP) account?

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Any U.S. citizen or resident alien who is at least 18 years old and has a valid U.S. Social Security or Taxpayer Identification Number can open a UESP account. This means that parents, grandparents, other relatives, or friends can save through UESP. You can even open an account for yourself. There are no age or income limits on who can invest money. Trusts and corporations can also be account owners with the proper documentation.

 

Can an account owner have more than one account?

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Yes, an account owner can open accounts for multiple beneficiaries and have multiple accounts for the same beneficiary.

 

Can there be more than one account owner on an account?

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No. There can only be one account owner per account.

 

What if the account owner dies?

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Account owners can designate successor account owners who will assume control of the account if the account owner dies. The successor account owner will have to provide proof regarding the account owner’s death, and he or she will also have to submit an Account Owner/Agent Change form. There cannot be a successor account owner for accounts owned by trusts, corporations, or those accounts designated as a custodial 529.

 

Who can be a beneficiary?

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Any U.S. citizen or resident alien who has a valid U.S. Social Security or Taxpayer Identification Number.

 

Can there be more than one beneficiary on an account?

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No. An account owner can designate only one beneficiary per account.

 

Can I change the beneficiary on the account?

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An account owner may change the beneficiary on an account as long as the new beneficiary is a member of the family of the preceding beneficiary. An allowable member of the family includes the father or mother or ancestor of either; a child or descendent of a child; a stepfather or stepmother; a stepson or stepdaughter; a brother, sister, stepbrother, or stepsister, half-brother or half-sister; a brother or sister of the father or mother; a brother-in-law, sister-in-law, son-in-law, daughter-in-law, father-in-law, or mother-in-law; a son or daughter of a brother or sister; a spouse of the beneficiary or any of the other individuals mentioned above; or a first cousin. There may be gift or generation-skipping transfer taxes when the beneficiary of an account is changed. Please consult your tax adviser.

 

Will an account affect my beneficiary’s eligibility for financial aid?

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Any assets owned by a parent or by the beneficiary are typically reported in applications for need-based financial aid. The exact portion of the account included in the Expected Family Contribution (EFC) calculation depends on a variety of factors. Read the UESP Program Description for more information about the federal financial aid risks of UESP accounts. Individuals should contact the college or university financial aid office regarding their individual financial aid circumstances.

 
 
 

Important Legal Notice

You should read the Program Description and consider all investment objectives, risks, charges, and expenses before investing. The Program Description is available for download on the web or a hard copy can be mailed to you by requesting it online here.

FDIC Insurance. Except for the underlying investment specified below, investments in UESP are not insured by the Federal Deposit Insurance Corporation (FDIC). FDIC insurance, up to applicable limits, is provided for the FDIC-insured accounts held in trust by UESP at Sallie Mae Bank and U.S. Bank National Association (U.S. Bank) (collectively Banks). Contributions to and earnings on the FDIC-insured accounts are allocated between the Banks according to the following percentages: Sallie Mae Bank (90 percent) and U.S. Bank (10 percent). Money in the FDIC-insured accounts is insured by the FDIC on a pass-through basis to each account owner at each Bank up to the maximum amount set by federal law, which is $250,000. The amount of FDIC insurance provided to an account owner is based on the total of (1) the value of an account owner’s investment in the FDIC-insured account at each Bank plus (2) the value of other accounts held (if any) at each Bank, as determined by the Banks and by FDIC regulations.

No Other Insurance and No Guarantees. Investments in UESP are neither insured nor guaranteed by the State of Utah, UESP, the Utah State Board of Regents, the Utah Higher Education Assistance Authority, other state agencies, federal government agencies (except to the extent noted above regarding FDIC insurance), or any employees or directors of any such entities. Units in UESP have not been registered with the United States Securities and Exchange Commission or with any state securities commission.

Account Value. The value of your UESP account may vary depending on market conditions and the performance of the UESP investment option you select. It could be more or less than the amount you contribute; in short, your investment could lose value. However, subject to the application of the rules and regulations of the Banks and the FDIC to each account owner, money in the FDIC-insured accounts will retain its value, whether in the FDIC-Insured investment option or when allocated to portions of another investment option that have the FDIC-insured accounts included as an underlying investment.

Non-Utah Taxpayers and Residents. You should determine whether the state in which you or your beneficiary pay taxes or live offers a 529 plan that provides state tax or other benefits not otherwise available to you by investing in UESP. You should consider such state tax treatment and benefits, if any, before investing in UESP.