Unused benefits may be transferred to a member of the Beneficiary’s family as defined by the Internal Revenue Service (The list of eligible family members is extensive).
The account owner would need to submit a completed Change of Beneficiary form to transfer the benefits to a new Beneficiary subject to a maximum nine semesters* allowed any single Beneficiary.
The purchaser must name a successor purchaser to the account who will have access to information about the account while the purchaser is alive and will take full control of the account upon the purchaser’s death.
If the purchaser dies without a will or if the successor purchaser dies before the purchaser’s death, the executor of the purchaser’s estate will be entitled to name a new purchaser or request a refund on behalf of the estate.
Under current law, plan earnings are 100 percent exempt from state and federal taxes. also enjoys federal gift and estate tax benefits.* Individuals subject to Illinois state income tax can deduct from their taxable income up to a maximum of $10,000 per year for contributions made toward the purchase of any College Illinois! Married couples filing jointly can deduct up to $20,000 per year.* This state tax deduction reduces the individuals' adjusted gross income (AGI) by the amount contributed up to $10,000 (or $20,000 for those filing jointly).** **The limit on the state tax deduction applies to combined contributions to College Illinois!