Give the Texas Tuition Promise Fund as a Gift

Not just parents, but grandparents, aunts, uncles and even friends can open a new contract or add to an existing account established by someone else.

Suggest a Contribution as a Gift

A contribution to your child’s Texas Tuition Promise Fund account is a wonderful suggestion when friends and family inquire about gift ideas for birthdays, holidays and other special occasions.

Contributing to your child’s college fund is a special gift that can help them prepare for college. And though the family will help you save, you will control how the money is spent.

Anyone Can Contribute to Your Contract

Anyone can help you purchase Tuition Units, including relatives, friends, or even your next door neighbor.

Please note, however, that the Purchaser will retain control over all contributions to the account (except for any state-funded contributions). Contributions may have gift or other tax consequences.

Gift Tax and Estate Tax Benefits

Family and friends can each purchase Tuition Units up to $13,000 per Beneficiary each year or up to $65,000 at once (using a special five-year proration period and assuming no other gifts have been made to the Beneficiary), without incurring a federal gift tax. To effect the five-year election, the contributor must file an IRS Form 709. If the contributor dies before the end of the five-year period, the applicable portion would be included in the contributor’s gross estate for federal estate tax purposes.

Purchases are generally treated as completed gifts, and qualify for the “annual exclusion” for federal gift tax purposes.

In addition, amounts contributed to purchase Tuition Units on behalf of a Beneficiary are generally excluded from a donor’s estate for federal estate tax purposes. Please check with your tax advisor for more information.

If establishing a new account, residency requirements apply to the Beneficiary. If the Beneficiary is not a Texas resident, then the Purchaser must be a Texas resident and the parent or guardian of the Beneficiary. Non-Purchasers or individuals designated as Successor Purchasers have no control over the Contract. Only the Purchaser (owner of the Contract) may direct transfers, rollovers, withdrawals, and changes in the Beneficiary.

Texas State Seal

Susan Combs,

Texas Comptroller of Public Accounts
Texas Accessibility Policy

The Texas Tuition Promise Fund® is established and maintained by the Texas Prepaid Higher Education Tuition Board. OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., is the plan manager. Some states offer favorable tax treatment to their residents only if they invest in the state's own plan. Investors should consider before investing whether their or their designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program and should consult their tax advisor. The Contracts are not deposits or other obligations of any depository institution. Neither a Contract nor any return paid with a refund is insured or guaranteed by the FDIC, the state of Texas, the Texas Prepaid Higher Education Tuition Board, any other state or federal governmental agency or OFI Private Investments Inc. or its affiliates. The Contracts have not been registered with the U.S. Securities and Exchange Commission or with any state.

Purchasers should carefully consider the risks, administrative fees, service and other charges and expenses associated with the Contracts, including plan termination and decreased refund or transfer value. The Plan Description and Master Agreement contain this and other information about the Plan, and may be obtained by visiting www.texastuitionpromisefund.com or calling 1.800.445.GRAD (4723), option #5. Purchasers should read these documents carefully before purchasing a Contract.

Comments or complaints may be forwarded to the Prepaid Higher Education Tuition Program, Office of the Comptroller of Public Accounts at P.O. Box 13407, Austin, Texas 78711-3407, or by calling 1-512-936-2064.

"Texas Tuition Promise Fund" is a registered mark of the Texas Prepaid Higher Education Tuition Board. All rights reserved.
©2014 OFI Private Investments Inc. All rights reserved.