Treasury HomeContact Us
Forms

Additional Information


Related Links


Announcements


Contract Termination:

The BEST Prepaid contract may only be terminated under the circumstances as provided for in the statute and rules that govern the BEST Prepaid Plan.

Contracts can only be terminated under certain conditions. Please visit the Terms and Conditions for further information. A Contract may not be terminated for any reason except under one (1) of the following circumstances. A termination request must be submitted by the Refund Recipient, notarized and filed with BEST. The request must be accompanied with documentation acceptable to by the program to substantiate the reason for Contract termination. Contract termination and subsequent refund of prepaid tuition units on account are only allowed by law under the following circumstances:

  1. The Beneficiary has died or suffers from a Permanent Disability; as such term is defined in the BEST Disclosure (click on link above);
  2. The Beneficiary is age eighteen (18) or older and has decided not to attend an Institution of Higher Education;
  3. The Beneficiary has completed the requirements for a degree that is less than a bachelor's degree at an Institution of Higher Education and the Beneficiary does not plan to pursue further education;
  4. The Beneficiary has completed the bachelor's degree requirements at an Institution of Higher Education; or
  5. The Beneficiary's Account contains five (5) Tuition Units or less and no Tuition Units have been purchased for the Beneficiary's Account for a period of at least three (3) consecutive years.

Refund Amount
  1. Death or Permanent Disability. In the event the Contract is terminated due to the death or Permanent Disability of the Beneficiary, the amount of the refund paid to the Refund Recipient shall be equal to the greater of the following:

    • One percent (1%) of the Weighted Average Tuition in the Academic Year the Contract is terminated, or if termination is due to death, in the Academic Year the death occurred, multiplied by the number of Tuition Units purchased and not used; or
    • The total purchase price of all Tuition Units purchased and not used.

  2. Voluntary Reasons. In the event the Contract is terminated under any of the conditions described in reasons 2-5 above, the amount of the refund paid to the Refund Recipient shall be equal to (i) the total purchase price of all Tuition Units purchased and not used, (ii) plus one hundred percent (100%) of the difference between said purchase price and one percent (1%) of the Weighted Average Tuition in the Academic Year the Contract is terminated, multiplied by the number of Tuition Units purchased and not
    used, (iii) minus any termination fee.
Timing of Refund:
Any refund payable pursuant to this section shall be made in a lump sum payment to the Refund Recipient within sixty (60) days of the Board's receipt of a complete and substantiated request therefore. Provided, however, if the Refund Recipient is the Beneficiary, the refund shall not be paid until the Beneficiary reaches age twenty (20).

Refund Fee
**A $25 fee may be applied if the contract is terminated for any reason other than the beneficiary's death or disability and units are not used for college.

Fraud:
The Board may, at its sole discretion, terminate the Contract if the Beneficiary, the Purchaser, the Purchaser's Appointee, or the Beneficiary's Appointee knowingly makes any false statement, or falsifies or permits to be falsified any record or records of the BEST Program. The amount of the refund to which the Refund Recipient is entitled under this paragraph shall be equal to the total purchase price of all Tuition Units purchased and not used.

Inactivity:
If a period of ten (10) consecutive years passes with no activity in the Beneficiary's Account or with no correspondence from the Beneficiary, Purchaser or their respective Appointees, the Board shall report and deliver the amount of any refund payable under the Contract to the State Treasurer pursuant to the Uniform Disposition of Unclaimed Property Act, codified in T.C.A., Title 66, Chapter 29, Part 1. Prior to delivering the refund to the State Treasurer, the Board shall make reasonable efforts to locate the Purchaser, Beneficiary, and their respective Appointees. The refund shall be equal to the amount provided for in the Voluntary Reasons paragraph above. The ten-year period shall not commence any earlier than the year the Beneficiary becomes eighteen (18) years of age, or the year the Contract was executed, whichever is later. Upon payment of the refund to the State Treasurer, the Board's obligations under the Contract shall cease.

Supporting Documentation:
The Board, in its discretion, may require supporting documentation in order to terminate and refund monies from a BEST account.