Probate & Trust Law Section Conference Manual ... - Minnesota CLE

Prop. Treas. Reg. § 1.529-1(c).
Institutions abroad may be eligible educational institutions. To verify that
a U.S. or foreign school is an “eligible educational institution,” visit the
U.S. Department of Education Federal School Code Search Page at:
www.fafsa.ed.gov/FOTWWebApp/FSLookupServlet.
5. Qualified Higher Education Expenses. Qualified higher education
expenses (“QHEEs”) are “(i) tuition, fees, books, supplies, and equipment
required for the enrollment or attendance of a designated beneficiary at an
eligible educational institution; and (ii) expenses for special needs services
in the case of a special needs beneficiary which are incurred in connection
with such enrollment or attendance.” Code § 529(e)(3)(A); Prop. Treas.
Reg. § 1.529-1(c).
a. Required. If an expenditure is required by the school’s catalogue
or included in the school’s “cost of attendance” for financial aid
purposes, it should be a QHEE.
b. Room and Board. Qualified higher education expenses also
include room and board for students who are enrolled in a degree
certificate or other program leading to a recognized educational
credential and carrying at least half the normal full-time work load
for the course of study being pursued. Code § 529(e)(3)(B); Prop.
Treas. Reg. § 1.529-1(c). However, section 529 limits the amount
allowable:
The amount treated as qualified higher education expenses
. . . shall not exceed (I) the allowance (applicable to the
student) for room and board included in the cost of
attendance (as defined in section 472 of the Higher
Education Act of 1965 (20 U.S.C. 1087ll), as in effect on
the date of the enactment of the Economic Growth and Tax
Relief Reconciliation Act of 2001) [June 7, 2001] as
determined by the eligible educational institution for such
period, or (II) if greater, the actual invoice amount the
student residing in housing owned or operated by the
eligible educational institution is charged by such
institution for room and board costs for such period.
Code § 529(e)(3)(B)(ii).
c. Computer and Internet. The American Recovery and
Reinvestment Act of 2009 (the “Act”) temporarily expanded the
definition of QHEEs to include computer technology and
equipment, and Internet access and related services, if such
technology equipment or services are to be used by the beneficiary
17