North Carolina S101 protects funds in education savings and ABLE accounts from creditor claims and judgments.

North Carolina S101 amends state law to enhance protections for funds held in education savings and ABLE accounts. The bill prohibits the distribution of funds from an ABLE account following the death of the account owner and limits the enforcement of judgments or claims on funds that were not used for a qualifying purpose or were deposited due to fraud. Funds in qualifying accounts, when used for permitted purposes, are exempt from liens, attachment, garnishment, levy, seizure, and involuntary sale or assignment by operation or execution of law. The act becomes effective September 1, 2025.

North Carolina S101 protects funds in education savings and ABLE accounts from creditor claims and judgments.

North Carolina S101 amends state law to enhance protections for funds held in education savings and ABLE accounts. The bill prohibits the distribution of funds from an ABLE account following the death of the account owner and limits the enforcement of judgments or claims on funds that were not used for a qualifying purpose or were deposited due to fraud. Funds in qualifying accounts, when used for permitted purposes, are exempt from liens, attachment, garnishment, levy, seizure, and involuntary sale or assignment by operation or execution of law. The act becomes effective September 1, 2025.