ARTICLE TAKEAWAYS
- The roles of the owner/custodian, beneficiary and successor owner/custodian for a CollegeAmerica account
- How to change the owner/custodian or beneficiary
- How to add or change a successor owner/custodian
One owner/custodian is named on a CollegeAmerica account and is the person who will be managing the account most often. The owner:
- Must be a U.S. citizen, a legal U.S. resident, a trust or an entity
- Must be of legal age to own securities (18 years old in most states)
- May be the same person as the beneficiary
Changing ownership requires the signature of both the new owner and the resigning owner. The resigning owner must obtain a signature guarantee. If the resigning owner is deceased, contact us.
Complete the CollegeAmerica Account Change Request (PDF).
One beneficiary is named on a CollegeAmerica account. The beneficiary:
- Must be a U.S. citizen or legal U.S. resident
- Does not need to be related to the owner/custodian
- Can be any age
- Can be both the beneficiary and owner or successor owner if at least 18 years old
To change the beneficiary, complete the CollegeAmerica Account Change Request (PDF). If you want to change the beneficiary and process a distribution to the new beneficiary, also complete the CollegeAmerica Distribution Request (PDF) and submit both forms together.
Generally, UGMA/UTMA custodians may not change the beneficiary of a custodial CollegeAmerica account. Custodians who want to change beneficiaries should seek advice from a tax advisor as funds held in UGMA/UTMA accounts represent an irrevocable gift to a specific individual.
Note: To avoid tax treatment of the beneficiary change as a distribution, the new beneficiary must be a member of the previous beneficiary’s family.
A successor owner/custodian can be named on most CollegeAmerica accounts. However, they cannot be the same person as the account owner or their estate. A successor owner/custodian:
- Must be a U.S. citizen, a legal U.S. resident, a trust or an entity
- Must be of legal age to own securities (18 years old in most states)
- May be the same person as the beneficiary
To add or change the successor owner, log in to your account or complete the CollegeAmerica Account Change Request (PDF).
Note: A contingent successor owner who meets the same eligibility requirements as a successor owner can be named on most CollegeAmerica accounts.
To add or change the contingent successor owner, log in to your account or complete the CollegeAmerica Account Change Request (PDF).