About Your Account.
How will I be informed about my account?
Is the Trust Audited?
Are Contributions Part of an Account Owner's Bankruptcy Estate?
Does Nebraska Legislation Protect Accounts From Creditors?
What if I move out of state?
What will happen to my account in the event of the account
owner's death?
Can I borrow from the plan or use my account as security
for a loan?
Is there a limit to how long an account can go unused?
What if I decide to close the account?
Can I contact my Financial Advisor to open an account?
How will I be informed about my account?
Union Bank & Trust will maintain separate records for each account and
will provide account owners with quarterly and annual statements indicating:
- Contributions made to the account during the period and aggregate
year-to-date contributions.
- Withdrawals from the account made during the period.
- The total value of the account at the end of the period.
If you have any questions or concerns about your account, you can access
account information
on line at this site or you may contact an account representative at 1-888-993-3746.
Is the Trust Audited?
Nebraska law requires the Trust to be audited by a certified public accountant or the Nebraska State Auditor. You can download a copy of the latest and prior audits by clicking here or by calling the Program Manager:
Are Contributions Part of an Account Owner's Bankruptcy Estate?
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 protects many Section 529 accounts in federal bankruptcy proceedings.
Your Account will be protected if the Beneficiary is your child, stepchild, grandchild, or stepgrandchild (including a child, stepchild, grandchild, or stepgrandchild through adoption or foster care) subject to the following limits:
- contributions made to all Section 529 accounts for the same designated beneficiary at least 720 days before a federal bankruptcy filing are completely protected;
- contributions made to all Section 529 accounts for the same designated beneficiary more than 365 days, but less than 720 days before a federal bankruptcy filing are protected up to $5,000; and
- contributions made to all Section 529 accounts for the same designated beneficiary less than 365 days before a federal bankruptcy filing are not protected against creditor claims in federal bankruptcy proceedings.
Your own state law may offer additional creditor protections. You should consult your legal advisor regarding the effect of any bankruptcy filing on your Account.
Does Nebraska Legislation Protect Accounts From Creditors?
The legislation establishing the Nebraska Educational Savings Plan Trust is to be interpreted in accordance with Nebraska law. Such legislation generally provides that any amount credited to a College Savings Plan of Nebraska Account is not susceptible to any levy, execution, judgment or other operation of law, garnishment or other judicial enforcement, and that such amount is not an asset or property of either the Beneficiary or the Account Owner for purposes of any state insolvency or inheritance tax laws.
Courts have yet to interpret, apply or rule on matters involving an interpretation of such legislation. Neither the Trust, the Nebraska State Treasurer, the Investment Council, the Nebraska State Investment Officer, or the Program Manager make any representations or warranties regarding protection from creditors. You should consult your legal advisor regarding this law and your circumstances.
What if I move out of state?
A change of residence will not affect the account. You can keep your money
invested in the account and continue to make contributions. Participants
who do not file a Nebraska Tax return will not be eligible for the Nebraska
State income tax benefits but all other benefits will still apply.
What will happen to my account in the event of the account
owner's death?
On your Enrollment Form, you may designate a successor Account Owner to take ownership of your Account in the event of your death. If you have already established an Account, you may designate a successor Account Owner or change your designation by completing the appropriate form which may be obtained by contacting the College Savings Plan of Nebraska at 1-888-993-3746 or downloading the form from this web site.
If you do not designate a successor Account Owner, then your estate,
acting through your personal representative, will become the successor
Account Owner. Before the successor Account Owner will be permitted to
transact business in respect of your Account, he or she will be required
to execute a new Enrollment Form, adopting the terms of the then current
Participation Agreement.
Can I borrow from the plan or use my account as security
for a loan?
No, federal law prohibits it.
Is there a limit to how long my account can go unused?
No, there is no limit.
What if I decide to close the account?
An account owner may close the account at any time. If the distribution
will not be used to cover a qualified education expense, the earnings
portion of the withdrawal will be subject to income tax and a 10% federal
penalty tax.
Can I contact my Financial Advisor to open an account?
Please contact your Financial Advisor for information on the College Savings
Plan of Nebraska Advisor
Accounts.
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