Tenn. Comp. R. & Regs. 1700-05-04-.01 - IN GENERAL
(1) Purpose. T.C.A.
Title 49, Chapter 7, Part 8 created the Tennessee College Savings Trust Act.
The Act creates a trust program, as an agency and instrumentality of the State
of Tennessee, under which families and other interested persons may save and
invest for the qualified higher education expenses of attending an eligible
educational institution. The Program may be comprised of two (2) types of
qualified tuition plans as defined in the Code, including one (1) or more
educational investment plan or plans, which may consist of several different
investment offerings or one (1) or more educational services plan or plans. The
purpose of these rules is to establish requirements for participation, and
administration of an educational investment plan as required by and consistent
with the Act.
(2) Definitions. For
purposes of these rules:
(a) "Academic Term"
means the school segment consisting of a single semester, quarter, term or
equivalent.
(b) "Account" has the
same meaning as set forth in T.C.A. §
49-7-802(7).
(c) "Account Owner" has the same meaning as
set forth in T.C.A. §
49-7-802(1).
(d) "Beneficiary" means an individual
designated by the Account Owner and who meets the requirements of the
Code.
(e) "Board" has the same
meaning as given in T.C.A. §
49-7-802(3),
which is comprised of the members described in T.C.A. §
49-7-804(a).
(f) "Code" has the same meaning as set forth
in T.C.A. §
49-7-802(4).
(g) "Contract" means an Educational
Investment Plan entered into under T.C.A. §
49-7-808 by the Board and an
Account Owner to provide for the payment of Qualified Higher Education
Expenses.
(h) "Contributor" has the
same meaning as set forth in T.C.A. §
49-7-802(5).
(i) "Custodial Guardian" means the person
with whom the child resides a majority of the time where there is an order of
joint custody or where there exist parenting plans pursuant to Title 36,
Chapter 6, Part 4 that address issues of custody. "Custodial Guardian" also
includes, in addition to a biological or legal parent having legal custody of a
child, an individual to whom legal custody of the child has been given by a
court of competent jurisdiction.
(j) "Educational Investment Plan" has the
same meaning as set forth in T.C.A. §
49-7-802(6).
(k) "Eligible Educational Institution" has
the same meaning as set forth in T.C.A. §
49-7-802(9).
(l) "Legal Guardian" means a person or entity
that has the legal authority to provide for the care, supervision or control of
a minor child as established by law or court order.
(m) "Legally Incompetent" means that an
individual has been declared incompetent by a court of law. An individual shall
not be considered to be Legally Incompetent unless proof thereof is furnished
in such form and manner as the Board may require.
(n) "Member of the Family" has the same
meaning as "member of the family" under the sections of the Internal Revenue
Code which are applicable to the Program.
(o) "New Beneficiary" means an individual to
whom rights under the Contract have been transferred pursuant to Rule
1700-05-04-.05.
(p) "Permanent Disability" means the
inability to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or to be of long-continued and indefinite duration. An
individual shall not be considered to have a Permanent Disability unless proof
is furnished of the existence thereof from a health care professional in such
form and manner as the Board may require. The Board must approve any finding of
a Permanent Disability.
(q)
"Person" shall mean an individual, partnership, corporation, association,
organization, government or governmental subdivision or agency, estate, trust
or any other legal or commercial entity.
(r) "Program" has the same meaning as set
forth in T.C.A. §
49-7-802(11).
(s) "Qualified Higher Education Expenses"
shall have the same meaning as set forth in T.C.A. §
49-7-802(13).
(t) "Redemption Value" has the same meaning
as set forth in T.C.A. §
49-7-802(14).
(u) "Refund Recipient" has the same meaning
as set forth in T.C.A. §
49-7-802(15). The
Refund Recipient may only be the Account Owner.
(v) "Successor Account Owner" means the
person named in the Contract by the Account Owner to exercise the rights of the
Account Owner under the Contract if the Account Owner dies or becomes Legally
Incompetent. The Successor Account Owner may be the Beneficiary. The Account
Owner may change the designation at any time in writing to the Board. If the
Account Owner dies or becomes Legally Incompetent, the Successor Account Owner
shall automatically become the Account Owner for purposes of these Rules and
the Contract, including, but not limited to constituting the Refund Recipient.
In the event the Account Owner dies or becomes Legally Incompetent and no
surviving Successor Account Owner exists, the surviving Successor Account Owner
is Legally Incompetent or declines to serve, or the Account Owner did not
designate a Successor Account Owner, the Beneficiary shall automatically become
the Account Owner for purposes of these Rules and the Contract, including, but
not limited to constituting the Refund Recipient. If the Beneficiary is a
minor, the following shall apply:
1. The
Beneficiary's Legal Guardian shall exercise the rights under these Rules and
the Contract on behalf of the Beneficiary until the Beneficiary reaches
majority.
2. If the Beneficiary has
more than one Legal Guardian, the Beneficiary's Custodial Guardian shall
exercise the rights on behalf of the Beneficiary until the Beneficiary reaches
majority.
3. If the Beneficiary has
more than one Custodial Guardian, the Custodial Guardians shall elect from
among themselves the person who will exercise the rights on behalf of the
Beneficiary until the Beneficiary reaches majority. In the event the Custodial
Guardians cannot agree, the Custodial Guardian whose birthday is earlier in the
calendar year shall exercise the rights on behalf of the Beneficiary until the
Beneficiary reaches majority.
4.
The Beneficiary's Legal Guardian shall promptly report to the Board any changes
in the legal guardianship of the Beneficiary.
(w) "Termination" means a discontinuance of
the right to receive tuition payments or other benefits under a
Contract.
(x) "Withdrawal" means a
disbursement of funds from the Account that is directed by the Account Owner to
be paid to the Account Owner, an Eligible Educational Institution, or the
Beneficiary.
Notes
Authority: T.C.A. §§ 49-7-801, 49-7-802, 49-7-802(3), 49-7-803, 49-7-805, 49-7-805(14), 49-7-805(16), 49-7-807, 49-7-808, 49-7-809, 49-7-811, 49-7-812, 49-7-823, and 49-7-824.
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.