O'Brien v. AMBS Diagnostics, LLC

Opinion

HOFFSTADT, J. —

Is money that a person sets aside for the “qualified higher education expenses” of his children under Internal Revenue Code section 529 (so-called section 529 savings accounts) exempt from the collection efforts under the Enforcement of Judgments Law, Code of Civil Procedure section 680.010 et seq., 1 of a creditor who has a valid judgment against that person? We conclude it is not. Accordingly, we reverse the trial court’s ruling to the contrary, and also reverse its finding that the debtor’s retirement accounts are fully exempt from collection because the court did not…