Illinois Governor signs bill with asset protection for 529 savings

The Illinois Governor has signed a bill (SB 497) that exempts accounts in an Illinois 529 savings plan from the claims of creditors of the account owner, donor, and beneficiary, effective June 1, 2008. Non-exempt transfers include certain fraudulent conveyances as well as contributions that in the aggregate exceed the annual gift tax exclusion amount (currently $12,000) during the 365 day period prior to filing for bankruptcy or during the 730 to 366 day period prior to filing for bankruptcy.
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