Delaware § 4916 Exemption of qualified tuition programs and qualified ABLE programs

Delaware Statutes

§ 4916 — Exemption of qualified tuition programs and qualified ABLE programs

Delaware·Title 10·Part Procedure·Ch. 49 EXECUTIONS·Subch. Subjects of Execution; Exemptions

(a)In addition to the exemptions provided in §§ 4902 and 4903 of this title, there shall be exempt from execution or attachment process assets held in and proceeds payable under or from any account established under a Qualified Tuition Program under § 529 of the Internal Revenue Code of 1986 (26 U.S.C. § 529), as amended (a “Tuition Account”) and any account established under § 529A of the Internal Revenue Code of 1986 (26 U.S.C. § 529A) (an “ABLE Account”). This exemption shall only apply to such amount as does not exceed the total contributions permitted under § 529(b)(6) of the Internal Revenue Code of 1986 (26 U.S.C. § 529(b)(6)) with respect to any Tuition Account or under § 529A(b)(6) of the Internal Revenue Code of 1986 (26 U.S.C. § 529A(b)(6)) with respect to any ABLE Account. (b

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(a) In addition to the exemptions provided in §§ 4902 and 4903 of this title, there shall be exempt from execution or attachment process assets held in and proceeds payable under or from any account established under a Qualified Tuition Program under § 529 of the Internal Revenue Code of 1986 (26 U.S.C. § 529), as amended (a “Tuition Account”) and any account established under § 529A of the Internal Revenue Code of 1986 (26 U.S.C. § 529A) (an “ABLE Account”). This exemption shall only apply to such amount as does not exceed the total contributions permitted under § 529(b)(6) of the Internal Revenue Code of 1986 (26 U.S.C. § 529(b)(6)) with respect to any Tuition Account or under § 529A(b)(6) of the Internal Revenue Code of 1986 (26 U.S.C. § 529A(b)(6)) with respect to any ABLE Account.

(b) This section shall not exempt from execution or attachment assets contributed by a debtor to any Tuition Account or ABLE Account within 365 days to the extent that such assets contributed within said 365 days exceed the greater of:

(1) $5,000; or

(2) The average annual contribution made by such debtor to such Tuition Account or ABLE Account for the 2 calendar years preceding the date of the filing of such execution or attachment or the filing of such petition.

(c) This section shall not exempt from execution or attachment any judgment obtained under Chapter 5 of Title 13 or § 554 of Title 30. If any portion of this section is held invalid or is preempted by federal law, in whole or in part, the remaining portions shall remain in effect to the maximum extent permitted by law.

(d) In the case of a Tuition Account or ABLE Account owned by a trust, nothing in this section may be construed to limit the protections afforded to trusts by § 3536 of Title 12.

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