Montana Code 53-25-121. Achieving a better life experience savings trust
53-25-121. Achieving a better life experience savings trust. (1) There is an achieving a better life experience savings trust that is an instrumentality of the state and that is created for a public purpose. The trust consists of trust interests, with each trust interest corresponding to an account. The assets of an account may not be commingled with the assets of any other account. The assets and earnings of an account may not be used to satisfy the obligations of any other account. Each account represents a trust interest in the trust and includes amounts received by the program pursuant to the participating trust agreement and the interest and investment income earned by the trust account.
Terms Used In Montana Code 53-25-121
- Account: means an eligible participating account established under this chapter by or on behalf of an eligible individual. See Montana Code 53-25-103
- Agent: means one of the following persons acting on behalf of a designated beneficiary:
(a)a person acting under a power of attorney; or
(b)if no person holds a power of attorney, a parent or legal guardian of the designated beneficiary. See Montana Code 53-25-103
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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
- Designated beneficiary: means the eligible individual on whose behalf an account is established. See Montana Code 53-25-103
- Financial institution: means a bank, commercial bank, national bank, savings bank, savings and loan association, credit union, insurance company, trust company, investment adviser, or other similar entity that is authorized to do business in this state. See Montana Code 53-25-103
- Investment products: means , without limitation, certificates of deposit, savings accounts paying fixed or variable interest, financial instruments, one or more mutual funds, and a mix of mutual funds. See Montana Code 53-25-103
- Participating trust agreement: means an agreement between a designated beneficiary and the department or its designee that creates a trust interest in the trust and provides for participation in the program. See Montana Code 53-25-103
- Program: means the Montana achieving a better life experience program provided for in this chapter and authorized under section 529A of the Internal Revenue Code, 26 U. See Montana Code 53-25-103
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- Trust: means the achieving a better life experience savings trust as provided in 53-25-121. See Montana Code 53-25-103
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
- Trust interest: means a designated beneficiary's interest in the trust created by a participating trust agreement and held for the benefit of the designated beneficiary. See Montana Code 53-25-103
- Trustee: A person or institution holding and administering property in trust.
- Trustee: means the department in its capacity as trustee of the trust. See Montana Code 53-25-103
(2)The assets of the trust consist of investments and earnings on investments of funds received by the program as deposits to accounts and as amounts transferred to the trust from accounts established prior to October 1, 2015.
(3)In accordance with the instructions of the designated beneficiary or agent, the trustee shall invest funds deposited in each account in permitted investment products as provided in this chapter. The trustee or a financial institution acting on behalf of the trustee shall pay or apply funds from each account for qualified withdrawals, nonqualified withdrawals, penalties, and withholdings.
(4)A designated beneficiary or agent may execute a participating trust agreement and have funds that are held by financial institutions in accounts established prior to October 1, 2015, transferred to the trust and to the transferor’s account.