O’Brien v. AMBS Diagnostics

After Diagnostics obtained a judgment against plaintiff, plaintiff filed a Claim of Exemption seeking a judicial declaration that seven of his Fidelity Investments accounts were exempt from levy. The court held that the money that a person sets aside for the “qualified higher education expenses” of his children under Internal Revenue Code section 529 (so-called “section 529 savings accounts”) are not exempt from the collection efforts under the California Enforcement of Judgments Law, Code of Civil Procedure section 680.010 et seq., of a creditor who has a valid judgment against that person. Therefore, the court reversed the trial court's ruling to the contrary and reversed the trial court's finding that plaintiff's retirement accounts are fully exempt from collection because the trial court did not apply the proper legal standard in evaluating the exemption for private retirement accounts. View "O'Brien v. AMBS Diagnostics" on Justia Law