South Carolina Code 11-5-410. Definitions
(1) "Palmetto ABLE account" or "account" means an individual savings account established in accordance with the provisions of this article and pursuant to Section 529A of the federal Internal Revenue Code of 1986, as amended.
Terms Used In South Carolina Code 11-5-410
- account: means an individual savings account established in accordance with the provisions of this article and pursuant to Section 529A of the federal Internal Revenue Code of 1986, as amended. See South Carolina Code 11-5-410
- Account owner: means the person who enters into a Palmetto ABLE account agreement pursuant to the provisions of this article. See South Carolina Code 11-5-410
- 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
- Contract: A legal written agreement that becomes binding when signed.
- Designated beneficiary: means an eligible individual whose qualified disability expenses may be paid from the account. See South Carolina Code 11-5-410
- Financial organization: means an organization authorized to do business in this State and is:
(a) licensed or chartered by the Director of Insurance;
(b) licensed or chartered by the State Commissioner of Banking;
(c) chartered by an agency of the federal government; or
(d) subject to the jurisdiction and regulation of the federal Securities and Exchange Commission. See South Carolina Code 11-5-410 - Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Member of the family: has the meaning defined in Section 529A of the federal Internal Revenue Code of 1986, as amended. See South Carolina Code 11-5-410
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- Program: means the Palmetto ABLE Savings Program established pursuant to this article. See South Carolina Code 11-5-410
- Program manager: means a financial organization or an agency or department of another state that has been designated to administer a qualified ABLE Program selected by the State Treasurer to act as a depository or manager of the program, or both. See South Carolina Code 11-5-410
- Qualified disability expense: means any qualified disability expense included in Section 529A of the federal Internal Revenue Code of 1986, as amended. See South Carolina Code 11-5-410
- Qualified withdrawal: means a withdrawal from an account to pay the qualified disability expenses of the designated beneficiary of the account. See South Carolina Code 11-5-410
- Rollover distribution: means a rollover distribution as defined in Section 529A of the federal Internal Revenue Code of 1986, as amended. See South Carolina Code 11-5-410
- Secretary: means the Secretary of the United States Treasury. See South Carolina Code 11-5-410
- Trustee: A person or institution holding and administering property in trust.
(2) "Account owner" means the person who enters into a Palmetto ABLE account agreement pursuant to the provisions of this article. The account owner also must be the designated beneficiary; however, a trustee, guardian, or conservator may be appointed as an account owner for a designated beneficiary who is a minor or lacks capacity to enter into an agreement. Also, the agent of the designated beneficiary acting under durable power of attorney may open and manage an account on behalf of and in the name of a designated beneficiary who lacks capacity.
(3) "Designated beneficiary" means an eligible individual whose qualified disability expenses may be paid from the account. The designated beneficiary must be an eligible individual at the time the account is established. The account owner may change the designated beneficiary so long as the new beneficiary is an eligible individual who is a qualified member of the family of the designated beneficiary at the time of the change.
(4) "Eligible individual", as defined in Section 529A(e)(1) of the federal Internal Revenue Code of 1986, as amended, means:
(a) an individual who is entitled to benefits based on blindness or disability pursuant to 42 U.S.C. § 401, et seq., or 42 U.S.C. § 1381, as amended, and the blindness or disability occurred before the date on which the individual attained age twenty-six; or
(b) an individual with respect to which a disability certification, as defined in Section 529A(e)(2) of the federal Internal Revenue Code of 1986, as amended, to the satisfaction of the Secretary of the United States Treasury is filed with the Secretary for a taxable year and the blindness or disability occurred before the date on which the individual attained age twenty-six.
(5) "Financial organization" means an organization authorized to do business in this State and is:
(a) licensed or chartered by the Director of Insurance;
(b) licensed or chartered by the State Commissioner of Banking;
(c) chartered by an agency of the federal government; or
(d) subject to the jurisdiction and regulation of the federal Securities and Exchange Commission.
(6) "Management contract" means a contract executed by the State Treasurer and a program manager selected to act as a depository or manager of the program, or both.
(7) "Member of the family" has the meaning defined in Section 529A of the federal Internal Revenue Code of 1986, as amended.
(8) "Nonqualified withdrawal" means a withdrawal from an account which is not:
(a) a qualified withdrawal; or
(b) a rollover distribution.
(9) "Program" means the Palmetto ABLE Savings Program established pursuant to this article.
(10) "Program manager" means a financial organization or an agency or department of another state that has been designated to administer a qualified ABLE Program selected by the State Treasurer to act as a depository or manager of the program, or both.
(11) "Qualified disability expense" means any qualified disability expense included in Section 529A of the federal Internal Revenue Code of 1986, as amended.
(12) "Qualified withdrawal" means a withdrawal from an account to pay the qualified disability expenses of the designated beneficiary of the account.
(13) "Rollover distribution" means a rollover distribution as defined in Section 529A of the federal Internal Revenue Code of 1986, as amended.
(14) "Savings agreement" means an agreement between the program manager or the State Treasurer and the account owner.
(15) "Secretary" means the Secretary of the United States Treasury.