| (a) Criteria for being a qualified replacement beneficiary.
An individual may be the qualified replacement beneficiary of a savings
trust agreement if:
(1) the individual is a member of the family of the
former beneficiary who satisfies the requirements of Internal Revenue
Code of 1986, §529(e)(2), as amended, so that the change of beneficiary
is not treated as a distribution under that law; and
(2) documentation that evidences the relationship between
the individual and the former beneficiary is submitted to the plan
manager that has custody of the savings trust account.
(b) Conditions for replacement of beneficiary. The
owner of a savings trust agreement may replace the beneficiary of
that agreement with another individual only if:
(1) the individual is a qualified replacement beneficiary
as described in subsection (a) of this section; and
(2) the owner pays to the plan manager that has custody
of the savings trust account any fees that are required under the
board's administrative fee and service charge schedule.
(c) Notwithstanding subsections (a) and (b) of this
section, an account owner that is a state or local government entity
(or agency or instrumentality thereof) or an organization described
in Internal Revenue Code of 1986, §501(c)(3), and exempt from
taxation under §501(a) of that code as part of a scholarship
program operated by such government or organization, may replace the
beneficiary of a savings trust agreement regardless of whether the
replacement beneficiary is a member of the family of the former beneficiary.
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