Source: https://vacode.org/23.1-707/
Timestamp: 2020-02-25 15:21:44
Document Index: 573318736

Matched Legal Cases: ['§ 23', '§ 23', '§ 23', '§ 529', '§ 55', '§ 2', '§ 2', '§ 2', '§ 23', '§ 23', '§ 34']

(Effective October 1, 2016) Prepaid tuition contracts and college and ABLE savings trust agreements (§ 23.1-707)—Virginia Decoded - Virginia Decoded
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§ 23.1-707 (Effective October 1, 2016) Prepaid tuition . . .
§ 23.1-707
(Effective October 1, 2016) Prepaid tuition contracts and college and ABLE savings trust agreements
1. The maximum and minimum contribution allowed on behalf of each qualified beneficiary for the payment of qualified higher education expenses at eligible institutions, as both such terms are defined in § 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law;
D. In addition to the provisions required by subsection A, each prepaid tuition contract shall include provisions for the application of tuition prepayments (i) at accredited nonprofit independent or private institutions of higher education, including actual interest and income earned on such prepayments, and (ii) at non-Virginia public and accredited nonprofit independent or private institutions of higher education, including principal and reasonable return on such principal as determined by the board. Payments authorized for accredited nonprofit independent or private institutions of higher education shall not exceed the projected highest payment made for tuition at a public institution of higher education in the same academic year, less a fee to be determined by the board. Payments authorized for non-Virginia public and accredited nonprofit independent or private institutions of higher education shall not exceed the projected average payment made for tuition at a public institution of higher education in the same academic year, less a fee to be determined by the board.
E. All prepaid tuition contracts and savings trust agreements shall specifically provide that if after a specified period of time the contract or savings trust agreement has not been terminated and the qualified beneficiary’s rights have not been exercised, the board, after making a reasonable effort to contact the purchaser or contributor and the qualified beneficiary or their agents, shall report such unclaimed moneys to the State Treasurer pursuant to § 55-210.12.
F. Notwithstanding any provision of law to the contrary, money in the Plan is exempt from creditor process, is not liable to attachment, garnishment, or other process, and shall not be seized, taken, appropriated, or applied by any legal or equitable process or operation of law to pay any debt or liability of any purchaser, contributor, or beneficiary, except that the state of residence of the beneficiary of an ABLE savings trust account shall be a creditor of such account in the event of the death of the beneficiary.
H. No prepaid tuition contract or savings trust account shall be assigned for the benefit of creditors, used as security or collateral for any loan, or otherwise subject to alienation, sale, transfer, assignment, pledge, encumbrance, or charge.
I. The board’s decision on any dispute, claim, or action arising out of or relating to a prepaid tuition contract or savings trust agreement made or entered into pursuant to this chapter or benefits under such prepaid tuition contract or savings trust agreement shall be considered a case decision as defined in § 2.2-4001 and all proceedings related to such dispute, claim, or action shall be conducted pursuant to Article 3 (§ 2.2-4018 et seq.) of the Administrative Process Act. Judicial review shall be provided exclusively pursuant to Article 5 (§ 2.2-4025 et seq.) of the Administrative Process Act.
1994, c. 661, § 23-38.81; 1995, c. 315; 1997, cc. 785, 861; 1999, cc. 485, 518; 2000, cc. 382, 400; 2015, cc. 227, 311; 2016, cc. 588, 639.
If you’re reading this for anything important, you should double-check its accuracy—read § 23.1-707 on the official Code of Virginia website.
HB457: ABLE savings trust agreements; elimination of Medicaid clawback. (failed)
SB656: Virginia College Savings Plan; members of governing board to disclose personal interests, etc. (failed)
HB1972: Virginia College Savings Plan; prepaid tuition contracts, etc. (passed)
SB1315: Virginia College Savings Plan; prepaid tuition contracts, etc. (passed)
§ 34-4 (Effective October 1, 2016) Exemption created