My parents set up a Guaranteed Education Tuition account for each of my kids in my name. Are these accounts exempt?

Asked over 4 years ago - Bellingham, WA

Is there any way to protect the proceeds from a GET account from being distributed to other creditors? All of the contributions to the accounts for my two kids were made by relatives, not me.

Attorney answers (1)

  1. Jeffrey Alan Lustick

    Pro

    Contributor Level 14

    Answered . I assume you are speaking about bankruptcy here. Under the 2005 amendments to the Federal Bankruptcy Code, these GET accounts, also known as 529 accounts, are exempt from distribution to creditors in bankruptcy. The only exception would be is if it could be shown that you "stuffed" the account to avoid money from falling into the hands of the creditor. But that being said, any contributions made to the 529 account two or more years ago, is completely devoid from distribution.

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