What is the Difference Between a Beneficiary, Account Owner, and a Successor?
Raise Education accounts involve different roles that determine who controls and benefits from the funds. Here’s what each role means:
Beneficiary
- The individual for whom the education savings are intended.
- The beneficiary can be a child, an adult learner, or anyone designated by the account owner.
- Funds in the account are used for the beneficiary’s qualified educational expenses.
Account Owner
- The person who opens and manages the Raise Education account.
- Has full control over contributions, withdrawals, and account settings.
- Responsible for ensuring that funds are used for qualified education expenses.
Successor
- The person designated to take over the account in case the original account owner can no longer manage it.
- Helps ensure the continued use of funds for the beneficiary’s education.
- Can step in to manage the account without needing to open a new one.
Why It Matters
Understanding these roles ensures that education savings are managed properly and that funds are used effectively for the intended beneficiary.
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