AGS 529 ABLE Knowledge Check July 2023

Can you transfer funds from a minor-aged beneficiaries UGMA/UTMA account to an Individual-type account?

• YES

• NO

When a distribution is sent to the Custodian on a UGMA/UTMA account
who receives the 1099-Q?

• The Custodian

• No 1099-Q is generated

• The Beneficiary

• Both the Custodian and the Beneficiary

Answer explanation

"Custodian" is the correct term for the Account Owner/Participant of UGMA/UTMA accounts.
Because the bene's are ultimately the owners of these accounts, they
ALWAYS are the recipients of the 1099-Q: even if they aren't the Payee on the distribution.

If an Account Owner calls on a MOD UGMA/UTMA account and the account is Frozen because the beneficiary has reached Age of Majority, can a withdrawal be processed?

• Yes, a one-time exception to the school only. A
  WR (work request) should be sent to the withdrawal queue and an alert placed on the account.

• No, the account must transfer to the beneficiary first before a withdrawal can be done.

• Yes, to the beneficiary only.

• Yes, to the AO, Beneficiary or to the school as a one time exception.

The Custodian of UGMA/UTMA account type for MND plan is calling about receiving a notice stating the account has a freeze due to the bene's age - They state they do not want to transfer funds to the beneficiary, that they believe the account was restricted prematurely. Is there an option?

• No, they must transfer the funds to the new beneficiary.

• Yes, they can do a one-time w/d to the school, then they need to transfer ownership to the beneficiary.

• Yes, they can make a full withdrawal payable to the beneficiary

• Yes, the Custodian can send a New Age Letter

Answer explanation

We should never pro-actively offer the New Age Letter on AOM (Age of Majority) account just because a Custodian is annoyed with the restriction - this should only be used when Custodian has a legal reason to believe the account should remain restricted.

For a plan in the UGMA/UTMA Project (other than WV/COA Plans) what is needed to transfer ownership to the beneficiary, once they're no longer a minor?

• Enrollment/
  Application Form and a completed Transfer Form

• Enrollment/
  Application Form and a Letter of Instruction
  (or Transfer/AIC Form)
  

• Enrollment/Application Form and Withdrawal Form

• Letter of Instruction with Withdrawal Form

Answer explanation

The only time a

-MSG (Medallion Signature Guarantee) -
or a
-Notary-

May be needed on the AIC (Account Information Change) Forms, for accounts flagged for the UGMA Project, is WVS/WVD/WVA or COA

NYD, The New York Plan has Harlem Children's Zone Accounts. What is the website?

• Harlem
  childrens
  zone.org

• Harlem
  childrens
  zone.com

• HCZone.org

• HCZ.org

How can you tell an account received a Freeze Notification Letter in regard to the UGMA Project?

• There will be a Maintenance category case note and a freeze on the account

• The account is frozen

• There is an alert on the account

• The caller will tell you they received a letter

The caller has a NYD Plan account. They want to send a withdrawal to the school via Flywire. How much is their fee?

• $0.00

• NYD does not participate in Flywire

• $10.00

• $15.00

What is needed to authenticate the account of a Deceased Account Owner, with a 3rd party caller? (select all that apply)

• AO/Trustee's
  full name

• Account Number

• Beneficiary's
  full name

• AO SSN

If there are no funds in the Deceased AO's account, what are you allowed to relay to the caller?

• Nothing - Route to Special Handling queue for them to review and CB

• Inform caller, "There are no active accounts under that name."

• Tell them the account is closed and when it was closed

• Nothing - Transfer to the Special Handling Line