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    Questions re: 529 accounts and gifts

    Hi,

    We have recently decided to file Ch.7, we are no asset (I think), including our house in the bk, not sure if we're filing pro se yet or not.

    I have two questions:

    1. We opened custodial accounts (UTMAs) for our 3 kids, 3 years ago, and have not put money in them since. We did, however, convert the accounts to 529 accounts last month, with NO additional contributions to the accounts. Are these accounts likely to be safe from our creditors?

    2. My father has been gifting us $1,500 a month for the last 3 months to help with our crazy expenses and so that our kids can still do their usual sports and activities. Will those deposits showing up in our joint account statements be a problem, or do we just explain them as gifts?

    Thank you so much for any advice you can offer.
    Filed Chapter 7: 3/12/09
    341 Meeting: 4/14/09 case declared "asset"
    Trustee ordered discharge/change to "no asset" 4/24/09
    Discharged 6/25/09; Closed 6/30/09

    #2
    Originally posted by marinah View Post
    Hi,

    We have recently decided to file Ch.7, we are no asset (I think), including our house in the bk, not sure if we're filing pro se yet or not.

    I have two questions:

    1. We opened custodial accounts (UTMAs) for our 3 kids, 3 years ago, and have not put money in them since. We did, however, convert the accounts to 529 accounts last month, with NO additional contributions to the accounts. Are these accounts likely to be safe from our creditors?

    2. My father has been gifting us $1,500 a month for the last 3 months to help with our crazy expenses and so that our kids can still do their usual sports and activities. Will those deposits showing up in our joint account statements be a problem, or do we just explain them as gifts?

    Thank you so much for any advice you can offer.
    Question 1. You should be fine. My attorney told us that they were exempt. we are in Missouri so I don't know if that makes a difference. We have 529 plans for each child.
    Retained my attorney 09.27.08
    Filing Ch. 7 02.23.09
    341 Meeting 03.25.09 :unsure
    Discharge 05.27.09

    Comment


      #3
      Ditto....our attorney advised we turn the kids accounts into 529's and completed that task last week.
      You might have your dad provide you with cash from here on out. You will most likely be asked to explain the deposits...not sure what kind of spin they can put on them though.

      Comment


        #4
        Originally posted by Workinitout View Post
        Ditto....our attorney advised we turn the kids accounts into 529's and completed that task last week.
        You might have your dad provide you with cash from here on out. You will most likely be asked to explain the deposits...not sure what kind of spin they can put on them though.

        You spin it as income and it appears on your means test and Schedule I.
        Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

        Comment


          #5
          I definitely understand that I'll have to include the gifts from my dad on the means test, but if there are no more gifts forthcoming (my dad is all tapped out), do I have to put it on Schedule I?

          Isn't Schedule I supposed to be more of an average monthly income currently and going forward -- or is that a 6 month average too?
          Filed Chapter 7: 3/12/09
          341 Meeting: 4/14/09 case declared "asset"
          Trustee ordered discharge/change to "no asset" 4/24/09
          Discharged 6/25/09; Closed 6/30/09

          Comment

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