Michigan Laws 206.988 – Changes in account owners or designated beneficiaries; transfers
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Terms Used In Michigan Laws 206.988
- ABLE: means achieving a better life experience. See Michigan Laws 206.982
- account: means an account established under this act. See Michigan Laws 206.982
- Account owner: means an individual who is a resident of this state, or a resident of a contracting state, and who enters into a Michigan ABLE savings program agreement and establishes an ABLE savings account. See Michigan Laws 206.982
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Designated beneficiary: means an eligible individual designated as the individual whose qualified disability expenses are expected to be paid from the account. See Michigan Laws 206.982
- Eligible individual: means that term as defined in section 529A of the internal revenue code. See Michigan Laws 206.982
- Member of the family: means a family member as defined in section 529A of the internal revenue code. See Michigan Laws 206.982
(1) Changes in account owners or designated beneficiaries are permitted as follows:
(a) An account owner may change the designated beneficiary of an account to another eligible individual who is a member of the family of the previously designated beneficiary.
(b) An account owner may transfer all or a portion of an account to another ABLE savings account with another designated beneficiary as long as the new designated beneficiary of the account to which the transfer is made is an eligible individual and a member of the family of the previous designated beneficiary.
(c) An account owner may designate another individual as a successor owner of the account in the event of the death of the account owner. The successor owner must meet the definition of an account owner under this act.
(2) Changes in designated beneficiaries and transfers under this section are not permitted to the extent that the change or transfer would constitute excess contributions or unauthorized investment choices.