Michigan Laws 206.906 – Withdrawal matched by program site; contingent beneficiary; financial institution not responsible for verification
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 206.906
- account: means an account established under section 4. See Michigan Laws 206.902
- Account holder: means a person who is the owner of an individual or family development account or the family if the account is a family account. See Michigan Laws 206.902
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contingent beneficiary: Receiver of property or benefits if the first named beneficiary fails to receive any or all of the property or benefits in question before his (her) death.
- Financial institution: means a state chartered bank, state chartered savings bank, savings and loan association, credit union, or trust company; or a national banking association or federal savings and loan association or credit union. See Michigan Laws 206.902
- Program: means the individual or family development account program established in section 3. See Michigan Laws 206.902
- Program site: means a charitable organization exempt from taxation under section 501(c)(3) or 501(c)(14) of the internal revenue code that is approved by the agency to implement the individual or family development account program. See Michigan Laws 206.902
(1) Money withdrawn during a calendar year from an individual or family development account by an account holder for a purpose under section 4 shall be matched by the program site as provided in the participant savings plan agreement between the account holder and the program site.
(2) An account holder shall name at least 1 contingent beneficiary at the time the account is established and may change beneficiaries at any time. If an account holder dies, the account shall be transferred to a contingent beneficiary. If the named beneficiary is deceased or otherwise cannot accept the transfer, the money shall be transferred to the estate of the beneficiary.
(3) A financial institution is not responsible for verifying whether or not withdrawals from accounts held at that financial institution are made in accordance with and for a purpose allowed under section 4.