Can creditors seize my money?

Guest 0.10 Dollars($)

I have taken out a college savings plan for my son with the money he received from a lawsuit (he's 10 years old) . The bank listed me as the owner of the account and my son was the beneficiary. Can my creditors seize the money? I have even asked the broker who sold me the account but he said it wasn't so because my son is listed as the beneficiary . Bit I'm not sure about it . Can anyone throw some light on this? I don't have any judgment against me nor have I been taken to court by any creditor.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Jayson.

Welcome to the forum.

Is this a Section 529 savings plan? If so then it should be protected from the creditor. BTW as this is your son's money although you are listed as the owner, the credit cannot seize the money/account. You should talk with the bank agents regarding this.

Best of luck,
Larry

jbarto65 · Joined: 04 Nov 2007 Posts: 626 -0.07 Dollars($)

If the broker told you that they can not seize it then he or she probably put it into the type of account that Larry is describing to you, you should consult with the bank to make sure of this.

If it is not this type of account, you can make sure that the account is closed and put into an account that will protect the funds from the creditors that seeks money from you.

All times are GMT - 7 Hours

Page 1 of 1