Current through Register Vol. 51, No. 3, September 1, 2024
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
164A.325(9) authorizes the
board to promulgate administrative regulations to implement the Kentucky
Educational Savings Plan Trust.
KRS
164A.330(6) requires that
each participation agreement provide that for a vested participation agreement,
the beneficiary shall be considered a resident of the Commonwealth for tuition
purposes if the beneficiary enrolls in an institution of higher education in
Kentucky. This administrative regulation establishes the standards for proof of
residency of a beneficiary for a vested participation agreement.
Section 1. Residency Requirement.
(1) A person who has been a resident of the
Commonwealth of Kentucky for at least eight (8) continuous years and was
designated as a beneficiary under a participation agreement that is in full
force and effect for that entire eight (8) year period, shall be deemed to have
a vested participation agreement, even if the beneficiary leaves the state
prior to enrollment in an institution of higher education.
(2) For purposes of subsection (1) of this
section, a participation agreement shall be deemed to be in full force and
effect if, at the end of the eight (8) year period, the total contributions of
principal to the account that remain in the account balance equals $2400 and
the participation agreement has not been cancelled at the time that the
beneficiary first enrolls in an institution of higher education.
Section 2. Proof of Residency.
(1) Following the expiration of the period of
eight (8) years of continuous residency by the beneficiary, either the
participant or the beneficiary shall submit to the program administrator
evidence of the residency to establish a vested participation agreement.
Evidence submitted on behalf of a dependent person shall pertain to the
domicile of either parent during the claimed period of residency. An individual
who enrolls in college immediately following graduation from high school and
remains enrolled shall:
(a) Be treated as a
dependent person unless the contrary is evident from the information submitted;
and
(b) Have his domicile inferred
from the student's permanent address, parent's mailing address, or location of
high school of graduation.
(2) A person claiming independent status
shall document independent status under subsection (4) of this section and
shall demonstrate by clear and convincing evidence that domicile in Kentucky
has been established by that person's acts.
(3) The determination of residency shall be
based upon verifiable circumstances or actions. A single fact shall not be
paramount, and each situation shall be evaluated to identify those facts which
are essential to the determination of domicile.
(4) The following facts, although not
conclusive, shall have probative value in support of a claim for resident
classification:
(a) Full-time employment in
Kentucky or transfer to an employer in contiguous area while maintaining
domicile in Kentucky;
(b) Filing of
Kentucky resident income tax return for each applicable calendar year of
claimed residency status;
(c)
Attendance as a full-time, nonresident student at an out-of-state institution
of higher education while determined to be a resident of Kentucky;
(d) Abandonment of a former domicile and
establishing domicile in Kentucky with attendance at an institution of higher
education following and incidental to the change in domicile;
(e) Payment of occupational taxes in
Kentucky;
(f) Payment of real
property taxes in Kentucky;
(g)
Payment of intangible personal property taxes in Kentucky;
(h) Ownership of real property in Kentucky,
if the property was used as a residence during the claimed period of residency
status;
(i) Long-term lease of
housing during the claimed period of residency status;
(j) Kentucky automobile registration during
the claimed period of residency;
(k) Kentucky driver's license during the
claimed period of residency status;
(l) Registration as a Kentucky voter during
the claimed period of residency; or
(m) Corroborating affidavit of a
nonrelative.
(5) The
determination of residency shall be based upon verifiable circumstances or
actions and authenticated copies of relevant documentation. The program
administrator may request additional documentation to clarify circumstances and
shall formulate a decision that considers all relevant facts.
Section 3. Nontransferability of
Vested Participation Agreement. Although the participant may freely substitute
beneficiaries under a participation agreement, the residency status acquired by
a beneficiary of a vested participation agreement shall not be used to confer
residency status on a substituted beneficiary, nor shall the residency of one
(1) beneficiary be taken into account in the establishment of a vestment period
for a substituted beneficiary.
