Account Owner Eligibility

Q: Who may purchase a contract?

A: Anyone or any organization (such as a church or business) may purchase a contract for a qualified beneficiary (i.e. child who meets the Florida residency requirement). A person purchasing a contract is required by law to be a US citizen or resident alien and be at least 18 years old.

Q: Must the account owner be a resident of Florida?

A: No. The account owner is not required to be a resident of Florida and may be any individual, business, or organization.

Q: May two people jointly purchase a contract for a particular child?

A: No. Only one person is allowed to purchase a contract for a child. The application provides space for one account owner and one survivor. The existence of a survivor does not create a joint account. The survivor enjoys the right of survivorship. Only the account owner named on the application is eligible to request a contract change, transfer, or cancellation. Refunds for cancellations or unused benefits are issued only to the account owner and not to either the survivor or beneficiary. If an account owner requests the cancellation of a contract, the survivor will be notified of the cancellation request.

Q: May a child purchase a contract for himself?

A: No. Due to restrictions on minors entering into contractual agreements, account owners must be at least 18 years of age.

Q: May an adult purchase a Florida Prepaid College Plan contract for himself?

A: No. An adult may not purchase a contract for him/herself because of the plan's age and grade limitations. There is no provision for adult education.

Q: May a prepaid contract be purchased for use as a gift?

A: Yes. A prepaid contract may be purchased by anyone to give to a designated child. The contract must be purchased during the designated enrollment period and the recipient (beneficiary) must be a resident of Florida.

Q: May a contract be sold to another parent for their child? May it be given away?

A: The designated account owner of a contract can not be transferred, that is, ownership of the contract may not be sold or given away. The account owner may change the beneficiary (student) on the account by submitting a written request. The account owner must sign the request. Click here for the Beneficiary Change Form . A beneficiary change to a family member is a non-taxable event and is not subject to federal income tax or the additional 10 percent federal tax. The plan does not charge a fee to change the beneficiary. A family member is defined as a person related to the beneficiary as follows:

• A son or daughter, or a descendant of either

• A stepson or stepdaughter

• A brother, sister, stepbrother or stepsister

• The father or mother, or an ancestor of either

• A stepfather or stepmother

• A son or daughter of a brother or sister

• A brother or sister of the father or mother

• A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law

• The spouse of any of the foregoing individuals, including the beneficiary

• A first cousin of the beneficiary

For this purpose a child includes a legally adopted child and a brother or sister includes a half-brother or a half-sister.

Note: The new beneficiary must meet the standard requirements for Florida residency and must be in 11th grade or younger and under the age of 21. If the new beneficiary is over the age of 21, this contract change will require a special petition to the Florida Prepaid College Board. The special petition must be in writing, signed by the Purchaser.

(Back to Main FAQ Page)