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Education Accounts (529B?)
It's more complicated than that. You need to read 541(b)(6) closely. Funds deposited into such accounts within the 365 days before filing are not property of the estate and would need to be exempted. Deposits between 365 and 720 days before filing are not property of the estate but only up to a limited amount for each beneficiary. I've had a case where we delayed filing for several months to get past these deadlines for a debtor who had made aggressive deposits into an education account (when times were good).
The Debtor is also required to file a "record of any interest" in such accounts with the Court pursuant to Section 521(c). Make sure to redact the minor child's first name and first five digits of the Social Security number.
Jim
________________________________
ark [roarklaw@yahoo.com]
Sent: Tuesday, January 12, 2010 12:39 AM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Re: Education Accounts (529B?)
See section 541(b)(6) - not property of the estate.
Holly Roark
The post was migrated from Yahoo.
See section 541(b)(6) - not property of the estate.
Holly Roark
holly@roarklawoffices.com
>
> I haven't run across too many of these, but I have a debtor client who
> has two college fund accounts (I think they're called 529-B accounts)
> held "for the benefit of" his children.
>
> Are these assets of the debtor and subject to being taken by a Trustee?
>
> *************************
> Mark J. Markus
> Law Office of Mark J. Markus
> 11684 Ventura Blvd. PMB #403
> Studio City, CA 91604-2652
> (818)509-1173 (818)509-1460 (fax)
> web: http://www.bklaw.com/
> This Firm is a Qualified Federal Debt Relief Agency (see what this means at http://bklaw.com/bankruptcy-blog/2008/0 ... efinition/)
> ________________________________________________
> NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
> IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.
>
The post was migrated from Yahoo.
I haven't run across too many of these, but I have a debtor client who
has two college fund accounts (I think they're called 529-B accounts)
held "for the benefit of" his children.
Are these assets of the debtor and subject to being taken by a Trustee?
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
web: http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency (see what this means at http://bklaw.com/bankruptcy-blog/2008/0 ... efinition/)
________________________________________________
NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.
The post was migrated from Yahoo.