Form 5305-E

(Rev. October 2016) 

Department of the Treasury 

Internal Revenue Service 

Coverdell Education Savings Trust Account 

(Under section 530 of the Internal Revenue Code) 

Do not file

with the Internal 

Revenue Service 

Name of grantor 

Check if amendment . . . ▶

Name of designated beneficiary 

Address of designated beneficiary Date of birth of designated beneficiary 

Name of responsible individual (generally the parent or guardian of the designated beneficiary) 

Address of responsible individual 

Name of trustee Address or principal place of business of trustee 

The grantor named above is establishing a Coverdell education savings trust account under section 530 for the benefit of the designated 

beneficiary exclusively to pay for the qualified elementary, secondary, and higher education expenses, within the meaning of section 530(b)(2), 

of such designated beneficiary. 

The grantor has assigned the trust dollars ($ ) in cash. 

The grantor and the trustee make the following agreement: 

Article I 

The trustee may accept additional cash contributions provided the designated beneficiary has not attained the age of 18 as of the date such 

contributions are made. Contributions by an individual contributor may be made for the tax year of the designated beneficiary by the due date 

of the beneficiary’s tax return for that year (excluding extensions). Total contributions that are not rollover contributions described in section 

530(d)(5) are limited to $2,000 for the tax year. In the case of an individual contributor, the $2,000 limitation for any year is phased out between 

modified adjusted gross income (AGI) of $95,000 and $110,000. For married individuals filing jointly, the phase-out occurs between modified 

AGI of $190,000 and $220,000. Modified AGI is defined in section 530(c)(2). 

Article II 

No part of the trust account funds may be invested in life insurance contracts, nor may the assets of the trust account be commingled with 

other property except in a common trust fund or a common investment fund (within the meaning of section 530(b)(1)(D)). 

Article III 

1. Any balance to the credit of the designated beneficiary on the date on which he or she attains age 30 shall be distributed to him or her 

within 30 days of such date. 

2. Any balance to the credit of the designated beneficiary shall be distributed within 30 days of his or her death unless the designated 

death beneficiary is a family member of the designated beneficiary and is under the age of 30 on the date of death. In such case, that family 

member shall become the designated beneficiary as of the date of death. 

Article IV 

The grantor shall have the power to direct the trustee regarding the investment of the above-listed amount assigned to the trust (including 

earnings thereon) in the investment choices offered by the trustee. The responsible individual, however, shall have the power to redirect the 

trustee regarding the investment of such amounts, as well as the power to direct the trustee regarding the investment of all additional 

contributions (including earnings thereon) to the trust. In the event that the responsible individual does not direct the trustee regarding the 

investment of additional contributions (including earnings thereon), the initial investment direction of the grantor also will govern all additional 

contributions made to the trust account until such time as the responsible individual otherwise directs the trustee. Unless otherwise provided 

in this agreement, the responsible individual also shall have the power to direct the trustee regarding the administration, management, and 

distribution of the account. 

Article V 

The “responsible individual” named by the grantor shall be a parent or guardian of the designated beneficiary. The trust shall have only one 

responsible individual at any time. If the responsible individual becomes incapacitated or dies while the designated beneficiary is a minor 

under state law, the successor responsible individual shall be the person named to succeed in that capacity by the preceding responsible 

individual in a witnessed writing or, if no successor is so named, the successor responsible individual shall be the designated beneficiary’s 

other parent or successor guardian. Unless otherwise directed by checking the option below, at the time that the designated beneficiary 

attains the age of majority under state law, the designated beneficiary becomes the responsible individual. If a family member under the age 

of majority under state law becomes the designated beneficiary by reason of being a named death beneficiary, the responsible individual shall 

be such designated beneficiary’s parent or guardian. 

Option (This provision is effective only if checked): The responsible individual shall continue to serve as the responsible individual for the 

trust after the designated beneficiary attains the age of majority under state law and until such time as all assets have been distributed from 

the trust and the trust terminates. If the responsible individual becomes incapacitated or dies after the designated beneficiary reaches the age 

of majority under state law, the responsible individual shall be the designated beneficiary. 

Cat. No. 25205V Form 5305-E (Rev. 10-2016) 
Form 5305-E (Rev. 10-2016) Page 2 

Article VI 

The responsible individual may or may not change the beneficiary designated under this agreement to another member of the 

designated beneficiary’s family described in section 529(e)(2) in accordance with the trustee’s procedures. 

Article VII 

1. The grantor agrees to provide the trustee with all information necessary to prepare any reports required by section 530(h). 

2. The trustee agrees to submit to the Internal Revenue Service (IRS) and responsible individual the reports prescribed by the IRS. 

Article VIII 

Notwithstanding any other articles which may be added or incorporated, the provisions of Articles I through III will be controlling. Any 

additional articles inconsistent with section 530 and the related regulations will be invalid. 

Article IX 

This agreement will be amended as necessary to comply with the provisions of the Code and the related regulations. Other amendments 

may be made with the consent of the grantor and trustee whose signatures appear below. 

Article X 

Article X may be used for any additional provisions. If no other provisions will be added, draw a line through this space. If provisions are 

added, they must comply with applicable requirements of state law and the Internal Revenue Code. 

Grantor’s signature Date 

Trustee’s signature Date 

Witness’ signature Date 

(Use only if signature of the grantor or the trustee is required to be witnessed.) 

General Instructions 

Section references are to the Internal 

Revenue Code unless otherwise noted. 

What's New

Military death gratuity. Families of soldiers 

who receive military death benefits may 

contribute, subject to certain limitations, up to 

100 percent of such benefits into an 

educational savings account. Publication 970, 

Tax Benefits for Education, explains the rules 

for rolling over the military death gratuity and 

lists eligible family members.

Purpose of Form 

Form 5305-E is a model trust account 

agreement that meets the requirements of 

section 530(b)(1) and has been pre-approved 

by the IRS. A Coverdell education savings 

account (ESA) is established after the form is 

fully executed by both the grantor and the 

trustee. This account must be created in the 

United States for the exclusive purpose of 

paying the qualified elementary, secondary, 

and higher education expenses of the 

designated beneficiary. 

If the model account is a custodial account, 

see Form 5305-EA, Coverdell Education 

Savings Custodial Account. 

Do not file Form 5305-E with the IRS. 

Instead, the grantor must keep the completed 

form in its records. 

Definitions 

Trustee. The trustee must be a bank or 

savings and loan association, as defined in 

section 408(n), or any person who has the 

approval of the IRS to act as trustee. Any 

person who may serve as a trustee of a 

traditional IRA may serve as the trustee of a 

Coverdell ESA. 

Grantor. The grantor is the person who 

establishes the trust account. 

Designated beneficiary. The designated 

beneficiary is the individual on whose behalf 

the trust account has been established. 

Family member. Family members of the

designated beneficiary include his or her

spouse, child, grandchild, sibling, parent, 

niece or nephew, son-in-law, daughter-in-law,

father-in-law, mother-in-law, brother-in-law, 

or sister-in-law, and the spouse of any such

individual. A first cousin, but not his or her

spouse, is also a “family member.” 

Responsible individual. The responsible 

individual, generally, is a parent or guardian of 

the designated beneficiary. However, under 

certain circumstances, the responsible 

individual may be the designated beneficiary. 

Identification Numbers 

The grantor and designated beneficiary’s 

social security numbers will serve as their 

identification numbers. If the grantor is a 

nonresident alien and does not have an 

identification number, write “Foreign” on the 

return for which is filed to report the grantor's 

information. The designated beneficiary’s 

social security number is the identification 

number of his or her Coverdell ESA. If the 

designated 

beneficiary is a nonresident alien, the 

designated beneficiary’s individual taxpayer 

identification number is the identification 

number of his or her Coverdell ESA. An 

employer identification number (EIN) is 

required only for a Coverdell ESA for which a 

return is filed to report unrelated business 

income. An EIN is required for a common fund 

created for Coverdell ESAs.

Specific Instructions

Note: The age limitation restricting

contributions, distributions, rollover

contributions, and change of beneficiary are

waived for a designated beneficiary with

special needs. 

Article X. Article X and any that follow may

incorporate additional provisions that are

agreed to by the grantor and trustee to

complete the agreement. They may include, 

for example, provisions relating to: definitions,

investment powers, voting rights, exculpatory 

provisions, amendment and termination,

removal of the trustee, trustee’s fees, state

law requirements, treatment of excess

contributions, and prohibited transactions

with the grantor, designated beneficiary, or

responsible individual, etc. Attach additional

pages as necessary.

Optional provisions in Article V and Article 

VI. Form 5305-E may be reproduced in a

manner that provides only those optional

provisions offered by the trustee.

Form 5305-E (Rev. 10-2016)