Exemption from claims of creditors

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53-25-122. Exemption from claims of creditors. (1) Except as provided in subsection (3) and 26 U.S.C. 529A, up to $100,000 of assets and earnings held in and distributions from the trust by or on behalf of a contributor or designated beneficiary of a participating trust agreement are exempt from all claims of creditors of the contributor or designated beneficiary.

(2) Subsection (1) applies to assets and earnings held in and distributions from a qualified program established as provided in section 529A of the Internal Revenue Code, 26 U.S.C. 529A, and maintained by another state if the contributor or designated beneficiary is a Montana resident.

(3) Assets, earnings, and distributions are not protected from claims if the contribution violates the Uniform Fraudulent Transfer Act provided for in Title 31, chapter 2, part 3, or 11 U.S.C. 548.

History: En. Sec. 2, Ch. 108, L. 2019; amd. Sec. 1, Ch. 31, L. 2021.


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