Montana Code 53-25-122. Exemption from claims of creditors
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.
Terms Used In Montana Code 53-25-122
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contribution: means a payment to an account for the benefit of a designated beneficiary. See Montana Code 53-25-103
- Contributor: means a person who makes a contribution to an account for the benefit of a designated beneficiary. See Montana Code 53-25-103
- Designated beneficiary: means the eligible individual on whose behalf an account is established. See Montana Code 53-25-103
- Participating trust agreement: means an agreement between a designated beneficiary and the department or its designee that creates a trust interest in the trust and provides for participation in the program. See Montana Code 53-25-103
- Program: means the Montana achieving a better life experience program provided for in this chapter and authorized under section 529A of the Internal Revenue Code, 26 U. See Montana Code 53-25-103
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- Trust: means the achieving a better life experience savings trust as provided in 53-25-121. See Montana Code 53-25-103
(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.