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Committee OKs bill letting courts approve 529 accounts for court‑administered settlements
Summary
House Bill 15207 would allow courts to authorize investing settlement proceeds for a ward or minor into a Section 529 college savings account. Sponsor Clark Tucker said the change helps parents grow settlement funds for a child's education rather than holding funds in low‑yield accounts.
Clark Tucker (State Senator, District 14) presented House Bill 15207 to allow a court administering a settlement on behalf of a ward or minor to approve investing settlement proceeds in a Section 529 account. Tucker described it as a narrow change to existing investment lists the court may approve for a guardian or custodian.
"I have a constituent who whose son was in an incident. There's a settlement. My constituent wants to invest the settlement proceeds into a 529 account ... Right now, she can't do that, and it's just sitting in a savings account where it earns interest at a very low rate," Tucker said.
Sen. Gilmore asked whether the statute referenced — cited in the hearing as 684101 — corresponds to 529 law; Tucker and staff confirmed it related to the 529 statute. No one signed in for or against the measure. The committee voted to pass the bill by voice vote.
Why it matters: The change updates court investment options to match a common financial vehicle for education costs. Sponsors said it removes an administrative obstacle without creating new spending mandates.
