Ohio 529 CollegeAdvantage has simplified the process to open an account to save for your children’s or grandchildren’s college and career training. When you sign up, you can now opt to name a successor account owner for the 529 account if you are physical or mentally unable to unable to make decisions for it. This step is optional; however, we highly recommend that you select a successor owner at this point. It’s easy to forget but important to set up.
What is a successor owner?
Simply put, a successor account owner is a person you designate that, in the event of your death or incapacitation, to become the new 529 owner. Having a successor owner should allow for an easy transfer of ownership of the 529 account and the continuance of the saving strategy you established for your child or grandchild. An Ohio 529 plan can only have one account owner, so setting up a successor account owner is a smart back-up plan.
You should select someone who you absolutely trust will follow your preferences on the use of the account. The successor owner is often the spouse of the account owner but can be anyone who is over 18 years of age. In situations where a grandparent owns an account for a grandchild, the successor owner could be the adult child of the account owner. It’s important to choose someone who will follow your wishes for the 529 account because once the successor owner has control of the account, they can choose to change the beneficiary to a different member of the family, request a withdrawal, and switch the 529 investment options.
Already an Ohio 529 account owner?
If you’ve already an Ohio 529 account owner and haven’t set up a successor account owner, you have two ways to add one: either by logging into your account or by completing the paper Account Information Change Form. If you prefer the online route, click on your “Profile and Documents” once logged in, then click “Successor Owners.” This is where you will add, delete, or update the successor owner’s information. If you prefer to use the paper form, please complete Sections 1, 2, 5, and 7, then mail the form to the address listed on it. Forms can be located on our website at CollegeAdvantage.com and selecting ‘Forms’ in the top right corner.
What happens if you need a successor owner?
If the worst happens and a successor account owner is needed? The 529 account ownership will be transferred to your successor when all required documents are received by Ohio Tuition Trust Authority.
What happens if you don’t name a successor owner? A probate court may end up designating one.
If you do not select a successor owner, or if the successor owner does not survive the account owner, the 529 assets will pass to your account beneficiary if they are 18 or older. If the beneficiary is not 18 at that time, then the person designated in your will or by the law will be in control of the 529 account.
Since laws vary from state to state, you may wish to consult a probate lawyer to determine the precise effect of such a designation.
You may revoke or change your successor owner at any time by filling in the appropriate section of the Account Information Change Form or by changing it online, where you will need to delete the current one rather than hitting “Edit,” then add the new one.
No one wants to consider a worst-case scenario, but you’ll discover that having the successor owner framework in place can only ease your mind that your 529 account will be directed as you would wish.
Visit Ohio 529 online today to start saving for your child’s or grandchild’s future education with as little as $25. A 529 account can be used for whatever school comes after high school—including four-year colleges and universities, community colleges, tech, trade or vocational schools, apprenticeships, and certificate or credential programs. Learn, plan, and start with Ohio 529 today at CollegeAdvantage.com.
