NC H131

Funds in the Parental Savings Trust Fund education savings and investment accounts are fully protected from creditor claims, liens, garnishment, attachment, and seizure.

Education savings and investment accounts qualified under section 529 of the Internal Revenue Code are exempt from creditor claims up to $25,000 cumulative limit, excluding contributions made within the preceding 12 months (unless consistent with past contribution patterns) and only for funds designated for a child's permitted education expenses.

ABLE accounts are protected from liens, attachment, garnishment, levy, seizure, and enforcement of judgments or creditor claims, except for distributions following the account owner's death.

The act becomes effective September 1, 2023, and applies to actions filed on or after that date.