Who is considered to be a member of the beneficiary’s family?

The new beneficiary must be a "Member of the Family" of the current beneficiary in order to prevent a non-qualified disbursement. A "Member of Family" must be related to the current beneficiary as one of the following:

Father or mother, or an ancestor of either

Stepfather or stepmother, but not their ancestors

Brother or sister of the father or mother, but not of a step-parent

Brother, sister, stepbrother or stepsister

Son or daughter, or descendant of either father-in-law or mother-in-law

Stepson or stepdaughter

Son or daughter of a brother or sister, but not of a step-sibling

Spouse of the designated beneficiary or any of the above individuals

Brother-in-law, sister-in-law, son-in-law, daughter-in-law

First Cousin