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 advisor.

 

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.