My kids savings accounts at risk?

[StillSwingn]

Howdy, this is my 1st post....I'm sure the first of many but this particular subject is at top of my list today to research. I will be heading into a chap 7 in the next month or two. Mostly non consumer debt (my business has just about gone belly up) that we will be trying to discharge here in the wonderful sage brush covered state of Nevada.
My question, will my two under age kids savings accounts be plundered by the trustee? I am a signer on both accounts. We have not tapped in to the accounts...just deposits from grandma and such.

Options:
pull me off the account
open new accounts for them
spend the money

We may only BK me and not the wife...for other reasons but will that help here?
Thanks!

[Help!]

Yes, unless you are able to exempt them they can become assets of the BK estate. The three options you are considering could all get you into trouble if discovered, and the trouble would be proportional to the amount of money involved.

[StillSwingn]

It would pretty easy to spend the money on appropriate debt. There is only about $1,200 in each of two accounts. I'd rather try to protect it for them but I don't see any exemptions in the state of Nevada that would apply.

[dingdong]

Can you roll it over to a 529 College savings. I thought I read somewhere that trustees don't go after those, but I could be wrong.

Seems like that would be a fairly allowable move.

Research it first though as always.

[Help!]

Can you roll it over to a 529 College savings. I thought I read somewhere that trustees don't go after those, but I could be wrong.

Seems like that would be a fairly allowable move.

Research it first though as always.

It's a possibility, but not if BK is going to be filed soon. It would be converting a non-exempt asset to an exempt asset (bad).

[StillSwingn]

This gets gray....BK planning. It seems a certain amount is allowable but at what point is it not? Our accountant happens to be a trustee as well. He's saying they are so busy right now that they don't have the resources to look deeply at the small guy. If you don't have a record of fraud, a criminal past, lots of property, investments, cash etc. your pretty much processed through. Not that I want to break any laws or rules. I just want to do whatever planning I can within the bounds of the system. I may be able to stretch this out until June or longer....but to what value?

[monkatom]

we had two savings accounts in kids name with wife as custodian. Lawyer said to no even list them as they did not belong to us. They ach had like 800 from birthdays, etc.

[StillSwingn]

I just checked, both accounts have like $2,200 each. I've never done anything with the accounts...not even made a deposit. My wife has done the deposits. No withdrawls within the last year....I can't remember...do they look back 1 year on all of the banking statements?

[StartingOver08]

Usually depends on the size of your case and your district. I had to provide two years bank statements (personal and corporate) to the Trustee and 3 yrs of cc statements and 10 yrs of real estate transactions. I was over median income so that was a factor too.

Some here have only provided 6 months of statements!

Check with your attorney to find out what is typical for your type of case

[Flamingo]

I just checked, both accounts have like $2,200 each. I've never done anything with the accounts...not even made a deposit. My wife has done the deposits. No withdrawls within the last year....I can't remember...do they look back 1 year on all of the banking statements?

What you have for your kids are custodial savings accounts (xxxx for the benefit of xxxx). That means you have access to those funds in there for any purpose whatsoever and can take them out and put them in at will, so, therefore, those funds are an asset to you. Check with your attorney.