Sect.529/Stocks held in trust

[Ifonly]

My children have Section 529 (college savings) that we've contributed to and my son also has a mutual fund with BofA (which is one of our creditors).

I'm assuming that since the plans/funds are under their SS# and held in trust for them, that our creditors can not touch them even with a cross-collaterization?

[justbroke]

I would say that they are out of reach of creditors. But you do have an affirmative defense if someone tries to mess with them. I won't even speculate, but you shouldn't have an issue.

Specifically, the Bankruptcy Code in 11 USC 541(b)(5)-(6) protects them if you meet the criteria listed there. There is also a monetary limit, but I don't know how it applies.