The mechanism to do this has not been defined yet. May be an equivalent to the EFT sign-up with the school to sign up for this also. This will be decided over the next few months. Exempt from NYS personal income tax. Federal income tax will be levied at the beneficiary's tax rate on earnings.
Estate can manage the account until the beneficiary is of age to receive the benefits.
Can't change account owner without changing the beneficiary. If money is withdrawn, the remaining funds still belong to the account owner. Schools would rather the workload not increase for them. The planned focus groups offered by HESC will address these issues. Non-qualified withdrawals will be taxed.