Questions re: 529 accounts and gifts

[marinah]

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.

[auttienkassiemo]

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.

[Workinitout]

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.

[OhioFiler]

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.

[marinah]

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?