{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/23.1-707.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/23.1-707.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/23.1-707.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/23.1-707.html"}],"law_id":57132,"edition_id":1,"section_id":57132,"structure_id":13113,"section_number":"23.1-707","catch_line":"Prepaid tuition contracts and college and ABLE savings trust agreements","history":"1994, c. 661, \u00a7 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; 2019, cc. 803, 804; 2020, c. 923.","full_text":"A\n\nEach prepaid tuition contract made pursuant to this chapter shall include the following terms and provisions:1\n\nThe amount of payment or payments and the number of payments required from a purchaser on behalf of a qualified beneficiary;2\n\nThe terms and conditions under which purchasers shall remit payments, including the dates of such payments;3\n\nProvisions for late payment charges, defaults, withdrawals, refunds, and any penalties;4\n\nThe name and date of birth of the qualified beneficiary on whose behalf the contract is made;5\n\nTerms and conditions for a substitution for the qualified beneficiary originally named;6\n\nTerms and conditions for termination of the contract, including any refunds, withdrawals, or transfers of tuition prepayments, and the name of the person entitled to terminate the contract;7\n\nThe time period during which the qualified beneficiary is required to claim benefits from the Plan;8\n\nThe number of credit hours or quarters, semesters, terms, or units contracted for by the purchaser, as applicable;9\n\nAll other rights and obligations of the purchaser and the trust; and10\n\nAny other terms and conditions that the board deems necessary or appropriate, including those necessary to conform the contract with the requirements of § 529 of the Internal Revenue Code of 1986, as amended, which specifies the requirements for qualified state tuition programs.B\n\nEach college savings trust agreement made pursuant to this chapter shall include the following terms and provisions:1\n\nThe maximum and minimum contribution allowed on behalf of each qualified beneficiary for the payment of qualified higher education expenses, as that term is defined in § 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law;2\n\nProvisions for withdrawals, refunds, transfers, and any penalties;3\n\nThe name, address, and date of birth of the qualified beneficiary on whose behalf the savings trust account is opened;4\n\nTerms and conditions for a substitution for the qualified beneficiary originally named;5\n\nTerms and conditions for termination of the account, including any refunds, withdrawals, or transfers, and applicable penalties, and the name of the person entitled to terminate the account;6\n\nThe time period during which the qualified beneficiary is required to use benefits from the savings trust account;7\n\nAll other rights and obligations of the contributor and the Plan; and8\n\nAny other terms and conditions that the board deems necessary or appropriate, including those necessary to conform the savings trust account with the requirements of § 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law.C\n\nEach ABLE savings trust agreement made pursuant to this chapter shall include the following terms and provisions:1\n\nThe maximum and minimum annual contribution and maximum account balance allowed on behalf of each qualified beneficiary for the payment of qualified disability expenses, as defined in § 529A of the Internal Revenue Code of 1986, as amended, or other applicable federal law;2\n\nProvisions for withdrawals, refunds, transfers, return of excess contributions, and any penalties;3\n\nThe name, address, and date of birth of the qualified beneficiary on whose behalf the savings trust account is opened;4\n\nTerms and conditions for a substitution for the qualified beneficiary originally named;5\n\nTerms and conditions for termination of the account, including any transfers to the state upon the death of the qualified beneficiary, refunds, withdrawals, transfers, applicable penalties, and the name of the person entitled to terminate the account;6\n\nThe time period during which the qualified beneficiary is required to use benefits from the savings trust account;7\n\nAll other rights and obligations of the contributor and the Plan; and8\n\nAny other terms and conditions that the board deems necessary or appropriate, including those necessary to conform the savings trust account with the requirements of § 529A of the Internal Revenue Code of 1986, as amended, or other applicable federal law.D\n\nIn addition to the provisions required by subsection A, each prepaid tuition contract entered into prior to July 1, 2019, 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. In no event, however, shall the benefit paid on any prepaid tuition contract entered into prior to July 1, 2019, be less than the sum of tuition prepayments made and a reasonable return on such prepayments to be determined by the board, less any fees determined by the board.E\n\nIn addition to the provisions required by subsection A, each prepaid tuition contract entered into on or after July 1, 2019, shall include provisions for the application of tuition prepayments, at a rate equal to the percentage of enrollment-weighted average tuition at public institutions of higher education to be determined by the board, at (i) public institutions of higher education, (ii) accredited nonprofit independent or private institutions of higher education, and (iii) non-Virginia public and accredited nonprofit independent or private institutions of higher education. In no event, however, shall the benefit paid on any prepaid tuition contract entered into on or after July 1, 2019, be less than tuition prepayments made, less any fees as determined by the board.F\n\nAll 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 § 55.1-2524.G\n\n1. 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. Unless required by federal law, the Commonwealth, its agencies, and its instrumentalities shall not seek payment pursuant to 26 U.S.C. \u00a7 529A from any ABLE savings trust account or its proceeds for benefits provided to the beneficiary of the account and shall not undertake estate recovery from any ABLE savings trust account pursuant to 26 U.S.C. \u00a7 529A.2\n\nUnless prohibited by federal law, the beneficiary of an ABLE savings trust account may appoint a survivor. In the event of the beneficiary’s death, if the survivor is (i) an eligible individual, as defined in 26 U.S.C. § 529A(e), then such survivor shall become the beneficiary of the ABLE savings trust account or (ii) not an eligible individual, as defined in 26 U.S.C. § 529A(e), then any proceeds remaining after final distributions have been made on behalf of the deceased beneficiary shall be distributed to the survivor and the account shall be closed.H\n\nNotwithstanding any other provision of state law that requires consideration of one or more financial circumstances of an individual for the purpose of determining (i) the individual’s eligibility to receive any assistance or benefit pursuant to such provision of state law or (ii) the amount of any such assistance or benefit that such individual is eligible to receive pursuant to such provision of state law, any (a) moneys in an ABLE savings trust account for which such individual is the beneficiary, including any interest on such moneys, (b) contributions to an ABLE savings trust account for which such individual is the beneficiary, and (c) distribution for qualified disability expenses for such individual from an ABLE savings trust account for which such individual is the beneficiary shall be disregarded for such purpose with respect to any period during which such individual remains the beneficiary of, makes contributions to, or receives distributions for qualified disability expenses from such ABLE savings trust account.I\n\nNo 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.J\n\nThe 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.","order_by":null,"text":{"0":{"id":209207,"text":"Each prepaid tuition contract made pursuant to this chapter shall include the following terms and provisions:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":209208,"text":"The amount of payment or payments and the number of payments required from a purchaser on behalf of a qualified beneficiary;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":209209,"text":"The terms and conditions under which purchasers shall remit payments, including the dates of such payments;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":209210,"text":"Provisions for late payment charges, defaults, withdrawals, refunds, and any penalties;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":209211,"text":"The name and date of birth of the qualified beneficiary on whose behalf the contract is made;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":209212,"text":"Terms and conditions for a substitution for the qualified beneficiary originally named;","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":209213,"text":"Terms and conditions for termination of the contract, including any refunds, withdrawals, or transfers of tuition prepayments, and the name of the person entitled to terminate the contract;","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A7"},"7":{"id":209214,"text":"The time period during which the qualified beneficiary is required to claim benefits from the Plan;","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A6","next_prefix":"A8"},"8":{"id":209215,"text":"The number of credit hours or quarters, semesters, terms, or units contracted for by the purchaser, as applicable;","type":"section","prefixes":["A","8"],"prefix":"8","entire_prefix":"A8","prefix_anchor":"A8","level":2,"prior_prefix":"A7","next_prefix":"A9"},"9":{"id":209216,"text":"All other rights and obligations of the purchaser and the trust; and","type":"section","prefixes":["A","9"],"prefix":"9","entire_prefix":"A9","prefix_anchor":"A9","level":2,"prior_prefix":"A8","next_prefix":"A10"},"10":{"id":209217,"text":"Any other terms and conditions that the board deems necessary or appropriate, including those necessary to conform the contract with the requirements of § 529 of the Internal Revenue Code of 1986, as amended, which specifies the requirements for qualified state tuition programs.","type":"section","prefixes":["A","10"],"prefix":"10","entire_prefix":"A10","prefix_anchor":"A10","level":2,"prior_prefix":"A9","next_prefix":"B"},"11":{"id":209218,"text":"Each college savings trust agreement made pursuant to this chapter shall include the following terms and provisions:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A10","next_prefix":"B1"},"12":{"id":209219,"text":"The maximum and minimum contribution allowed on behalf of each qualified beneficiary for the payment of qualified higher education expenses, as that term is defined in § 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"13":{"id":209220,"text":"Provisions for withdrawals, refunds, transfers, and any penalties;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"14":{"id":209221,"text":"The name, address, and date of birth of the qualified beneficiary on whose behalf the savings trust account is opened;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"15":{"id":209222,"text":"Terms and conditions for a substitution for the qualified beneficiary originally named;","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"16":{"id":209223,"text":"Terms and conditions for termination of the account, including any refunds, withdrawals, or transfers, and applicable penalties, and the name of the person entitled to terminate the account;","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"17":{"id":209224,"text":"The time period during which the qualified beneficiary is required to use benefits from the savings trust account;","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"B7"},"18":{"id":209225,"text":"All other rights and obligations of the contributor and the Plan; and","type":"section","prefixes":["B","7"],"prefix":"7","entire_prefix":"B7","prefix_anchor":"B7","level":2,"prior_prefix":"B6","next_prefix":"B8"},"19":{"id":209226,"text":"Any other terms and conditions that the board deems necessary or appropriate, including those necessary to conform the savings trust account with the requirements of § 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law.","type":"section","prefixes":["B","8"],"prefix":"8","entire_prefix":"B8","prefix_anchor":"B8","level":2,"prior_prefix":"B7","next_prefix":"C"},"20":{"id":209227,"text":"Each ABLE savings trust agreement made pursuant to this chapter shall include the following terms and provisions:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B8","next_prefix":"C1"},"21":{"id":209228,"text":"The maximum and minimum annual contribution and maximum account balance allowed on behalf of each qualified beneficiary for the payment of qualified disability expenses, as defined in § 529A of the Internal Revenue Code of 1986, as amended, or other applicable federal law;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"22":{"id":209229,"text":"Provisions for withdrawals, refunds, transfers, return of excess contributions, and any penalties;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"23":{"id":209230,"text":"The name, address, and date of birth of the qualified beneficiary on whose behalf the savings trust account is opened;","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"24":{"id":209231,"text":"Terms and conditions for a substitution for the qualified beneficiary originally named;","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"25":{"id":209232,"text":"Terms and conditions for termination of the account, including any transfers to the state upon the death of the qualified beneficiary, refunds, withdrawals, transfers, applicable penalties, and the name of the person entitled to terminate the account;","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"C6"},"26":{"id":209233,"text":"The time period during which the qualified beneficiary is required to use benefits from the savings trust account;","type":"section","prefixes":["C","6"],"prefix":"6","entire_prefix":"C6","prefix_anchor":"C6","level":2,"prior_prefix":"C5","next_prefix":"C7"},"27":{"id":209234,"text":"All other rights and obligations of the contributor and the Plan; and","type":"section","prefixes":["C","7"],"prefix":"7","entire_prefix":"C7","prefix_anchor":"C7","level":2,"prior_prefix":"C6","next_prefix":"C8"},"28":{"id":209235,"text":"Any other terms and conditions that the board deems necessary or appropriate, including those necessary to conform the savings trust account with the requirements of § 529A of the Internal Revenue Code of 1986, as amended, or other applicable federal law.","type":"section","prefixes":["C","8"],"prefix":"8","entire_prefix":"C8","prefix_anchor":"C8","level":2,"prior_prefix":"C7","next_prefix":"D"},"29":{"id":209236,"text":"In addition to the provisions required by subsection A, each prepaid tuition contract entered into prior to July 1, 2019, 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. In no event, however, shall the benefit paid on any prepaid tuition contract entered into prior to July 1, 2019, be less than the sum of tuition prepayments made and a reasonable return on such prepayments to be determined by the board, less any fees determined by the board.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C8","next_prefix":"E"},"30":{"id":209237,"text":"In addition to the provisions required by subsection A, each prepaid tuition contract entered into on or after July 1, 2019, shall include provisions for the application of tuition prepayments, at a rate equal to the percentage of enrollment-weighted average tuition at public institutions of higher education to be determined by the board, at (i) public institutions of higher education, (ii) accredited nonprofit independent or private institutions of higher education, and (iii) non-Virginia public and accredited nonprofit independent or private institutions of higher education. In no event, however, shall the benefit paid on any prepaid tuition contract entered into on or after July 1, 2019, be less than tuition prepayments made, less any fees as determined by the board.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"31":{"id":209238,"text":"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 § 55.1-2524.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"32":{"id":209239,"text":"1. 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. Unless required by federal law, the Commonwealth, its agencies, and its instrumentalities shall not seek payment pursuant to 26 U.S.C. \u00a7 529A from any ABLE savings trust account or its proceeds for benefits provided to the beneficiary of the account and shall not undertake estate recovery from any ABLE savings trust account pursuant to 26 U.S.C. \u00a7 529A.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"G2"},"33":{"id":209240,"text":"Unless prohibited by federal law, the beneficiary of an ABLE savings trust account may appoint a survivor. In the event of the beneficiary’s death, if the survivor is (i) an eligible individual, as defined in 26 U.S.C. § 529A(e), then such survivor shall become the beneficiary of the ABLE savings trust account or (ii) not an eligible individual, as defined in 26 U.S.C. § 529A(e), then any proceeds remaining after final distributions have been made on behalf of the deceased beneficiary shall be distributed to the survivor and the account shall be closed.","type":"section","prefixes":["G","2"],"prefix":"2","entire_prefix":"G2","prefix_anchor":"G2","level":2,"prior_prefix":"G","next_prefix":"H"},"34":{"id":209241,"text":"Notwithstanding any other provision of state law that requires consideration of one or more financial circumstances of an individual for the purpose of determining (i) the individual’s eligibility to receive any assistance or benefit pursuant to such provision of state law or (ii) the amount of any such assistance or benefit that such individual is eligible to receive pursuant to such provision of state law, any (a) moneys in an ABLE savings trust account for which such individual is the beneficiary, including any interest on such moneys, (b) contributions to an ABLE savings trust account for which such individual is the beneficiary, and (c) distribution for qualified disability expenses for such individual from an ABLE savings trust account for which such individual is the beneficiary shall be disregarded for such purpose with respect to any period during which such individual remains the beneficiary of, makes contributions to, or receives distributions for qualified disability expenses from such ABLE savings trust account.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G2","next_prefix":"I"},"35":{"id":209242,"text":"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.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"36":{"id":209243,"text":"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.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I"}},"ancestry":[{"id":13113,"edition_id":1,"name":"Commonwealth Savers Plan and Able Savings Trust Accounts","identifier":"7","label":"chapter","depth":3,"order_by":1,"parent_id":13112,"metadata":{},"date_created":"2026-06-26 03:44:18","date_modified":"2026-06-26 03:44:18","permalink":{"id":185235,"object_type":"structure","relational_id":13113,"identifier":"7","token":"23.1\/II\/7","url":"\/23.1\/II\/7\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13112,"edition_id":1,"name":"Students and Campus","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":13111,"metadata":{},"date_created":"2026-06-26 03:44:18","date_modified":"2026-06-26 03:44:18","permalink":{"id":184847,"object_type":"structure","relational_id":13112,"identifier":"II","token":"23.1\/II","url":"\/23.1\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13111,"edition_id":1,"name":"Institutions of Higher Education; Other Educational and Cultural Institutions","identifier":"23.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:18","date_modified":"2026-06-26 03:44:18","permalink":{"id":184581,"object_type":"structure","relational_id":13111,"identifier":"23.1","token":"23.1","url":"\/23.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":66160,"structure_id":13113,"section_number":"23.1-700","catch_line":"Definitions","url":"\/23.1-700\/","token":"23.1\/II\/7\/23.1-700","metadata":false},{"id":78668,"structure_id":13113,"section_number":"23.1-701","catch_line":"Plan established; moneys; governing board","url":"\/23.1-701\/","token":"23.1\/II\/7\/23.1-701","metadata":false},{"id":64579,"structure_id":13113,"section_number":"23.1-702","catch_line":"Advisory committees to the board; membership; terms; qualifications; duties","url":"\/23.1-702\/","token":"23.1\/II\/7\/23.1-702","metadata":false},{"id":86791,"structure_id":13113,"section_number":"23.1-703","catch_line":"Chief executive officer of the Plan","url":"\/23.1-703\/","token":"23.1\/II\/7\/23.1-703","metadata":false},{"id":86977,"structure_id":13113,"section_number":"23.1-704","catch_line":"Powers and duties of the board","url":"\/23.1-704\/","token":"23.1\/II\/7\/23.1-704","metadata":false},{"id":77185,"structure_id":13113,"section_number":"23.1-705","catch_line":"Board actions not a debt of Commonwealth","url":"\/23.1-705\/","token":"23.1\/II\/7\/23.1-705","metadata":false},{"id":72372,"structure_id":13113,"section_number":"23.1-706","catch_line":"Standard of care; investment and administration of the Plan","url":"\/23.1-706\/","token":"23.1\/II\/7\/23.1-706","metadata":false},{"id":57132,"structure_id":13113,"section_number":"23.1-707","catch_line":"Prepaid tuition contracts and college and ABLE savings trust agreements","url":"\/23.1-707\/","token":"23.1\/II\/7\/23.1-707","metadata":false},{"id":54148,"structure_id":13113,"section_number":"23.1-707.1","catch_line":"Prepaid tuition contracts; pricing reserves; limitations","url":"\/23.1-707.1\/","token":"23.1\/II\/7\/23.1-707.1","metadata":false},{"id":62682,"structure_id":13113,"section_number":"23.1-708","catch_line":"Assets of the Plan exempt from taxation","url":"\/23.1-708\/","token":"23.1\/II\/7\/23.1-708","metadata":false},{"id":77258,"structure_id":13113,"section_number":"23.1-709","catch_line":"Annual report","url":"\/23.1-709\/","token":"23.1\/II\/7\/23.1-709","metadata":false},{"id":74025,"structure_id":13113,"section_number":"23.1-710","catch_line":"Forms and audit of accounts and records","url":"\/23.1-710\/","token":"23.1\/II\/7\/23.1-710","metadata":false},{"id":82160,"structure_id":13113,"section_number":"23.1-711","catch_line":"Admission to institutions not guaranteed; coverage limitations","url":"\/23.1-711\/","token":"23.1\/II\/7\/23.1-711","metadata":false},{"id":72325,"structure_id":13113,"section_number":"23.1-712","catch_line":"Payroll deductions","url":"\/23.1-712\/","token":"23.1\/II\/7\/23.1-712","metadata":false},{"id":84958,"structure_id":13113,"section_number":"23.1-713","catch_line":"Liberal construction of chapter","url":"\/23.1-713\/","token":"23.1\/II\/7\/23.1-713","metadata":false}],"previous_section":{"id":72372,"structure_id":13113,"section_number":"23.1-706","catch_line":"Standard of care; investment and administration of the Plan","url":"\/23.1-706\/","token":"23.1\/II\/7\/23.1-706","metadata":false},"next_section":{"id":54148,"structure_id":13113,"section_number":"23.1-707.1","catch_line":"Prepaid tuition contracts; pricing reserves; limitations","url":"\/23.1-707.1\/","token":"23.1\/II\/7\/23.1-707.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/23.1-707\/","history_text":"

This law was first created in 1994. The record of its establishment is cataloged in chapter 661<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 8 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1995, chapter 315<\/a>; in 1997, chapters 785<\/a> and 861<\/a>; in 1999, chapters 485<\/a> and 518<\/a>; in 2000, chapters 382<\/a> and 400<\/a>; in 2015, chapters 227<\/a> and 311<\/a>; in 2016, chapters 588<\/a> and 639<\/a>; in 2019, chapters 803<\/a> and 804<\/a>; in 2020, chapter 923<\/a>.<\/p>","references":[{"id":86197,"section_number":"34-4","catch_line":"Exemption created","order_by":null,"url":"\/34-4\/"},{"id":78976,"section_number":"8.01-424","catch_line":"Approval of compromises on behalf of persons under a disability in suits or actions to which they are parties","order_by":null,"url":"\/8.01-424\/"}],"refers_to":[{"id":83688,"section_number":"2.2-4001","catch_line":"Definitions","order_by":null,"url":"\/2.2-4001\/"},{"id":59227,"section_number":"2.2-4018","catch_line":"Exemptions from operation of Article 3","order_by":null,"url":"\/2.2-4018\/"},{"id":69646,"section_number":"2.2-4025","catch_line":"Exemptions operation of this article; limitations","order_by":null,"url":"\/2.2-4025\/"}],"permalink":{"id":185265,"object_type":"law","relational_id":57132,"identifier":"23.1-707","token":"23.1\/II\/7\/23.1-707","url":"\/23.1-707\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/23.1-707\/","token":"23.1\/II\/7\/23.1-707","dublin_core":{"Title":"Prepaid tuition contracts and college and ABLE savings trust agreements","Type":"Text","Format":"text\/html","Identifier":"\u00a7 23.1-707","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Each prepaid tuition contract<\/span> made pursuant to this chapter shall include the following terms and provisions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The amount of payment or payments and the number of payments required from a purchaser<\/span> on behalf of a qualified beneficiary<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The terms and conditions under which purchasers<\/span> shall remit payments, including the dates of such payments; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Provisions for late payment charges, defaults<\/span>, withdrawals, refunds, and any penalties; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The name and date of birth of the qualified beneficiary<\/span> on whose behalf the contract is made; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Terms and conditions for a substitution for the qualified beneficiary<\/span> originally named; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Terms and conditions for termination of the contract, including any refunds, withdrawals, or transfers of tuition prepayments, and the name of the person entitled to terminate the contract; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The time period during which the qualified beneficiary<\/span> is required to claim benefits from the Plan<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> The number of credit hours or quarters, semesters, terms, or units contracted for by the purchaser<\/span>, as applicable; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> All other rights and obligations of the purchaser<\/span> and the trust; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> Any other terms and conditions that the board<\/span> deems necessary or appropriate, including those necessary to conform the contract with the requirements of § 529 of the Internal Revenue Code of 1986, as amended, which specifies the requirements for qualified state tuition programs. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Each college savings trust agreement<\/span> made pursuant to this chapter shall include the following terms and provisions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The maximum and minimum contribution allowed on behalf of each qualified beneficiary<\/span> for the payment of qualified higher education expenses, as that term is defined in § 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Provisions for withdrawals, refunds, transfers, and any penalties; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The name, address, and date of birth of the qualified beneficiary<\/span> on whose behalf the savings trust account<\/span> is opened; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Terms and conditions for a substitution for the qualified beneficiary<\/span> originally named; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Terms and conditions for termination of the account, including any refunds, withdrawals, or transfers, and applicable penalties, and the name of the person entitled to terminate the account; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The time period during which the qualified beneficiary<\/span> is required to use benefits from the savings trust account<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> All other rights and obligations of the contributor<\/span> and the Plan<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Any other terms and conditions that the board<\/span> deems necessary or appropriate, including those necessary to conform the savings trust account<\/span> with the requirements of § 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Each ABLE savings trust agreement<\/span> made pursuant to this chapter shall include the following terms and provisions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The maximum and minimum annual contribution and maximum account balance allowed on behalf of each qualified beneficiary<\/span> for the payment of qualified disability expenses, as defined in § 529A of the Internal Revenue Code of 1986, as amended, or other applicable federal law<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Provisions for withdrawals, refunds, transfers, return of excess contributions, and any penalties; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The name, address, and date of birth of the qualified beneficiary<\/span> on whose behalf the savings trust account<\/span> is opened; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Terms and conditions for a substitution for the qualified beneficiary<\/span> originally named; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Terms and conditions for termination of the account, including any transfers to the state upon the death of the qualified beneficiary<\/span>, refunds, withdrawals, transfers, applicable penalties, and the name of the person entitled to terminate the account; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The time period during which the qualified beneficiary<\/span> is required to use benefits from the savings trust account<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> All other rights and obligations of the contributor<\/span> and the Plan<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Any other terms and conditions that the board<\/span> deems necessary or appropriate, including those necessary to conform the savings trust account<\/span> with the requirements of § 529A of the Internal Revenue Code of 1986, as amended, or other applicable federal law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> In addition to the provisions required by subsection A, each prepaid tuition contract<\/span> entered into prior to July 1, 2019, 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<\/span>, including principal and reasonable return on such principal as determined by the board<\/span>. 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<\/span> in the same academic year, less a fee to be determined by the board<\/span>. Payments authorized for non-Virginia public and accredited nonprofit independent or private institutions of higher education<\/span> shall not exceed the projected average payment made for tuition at a public institution of higher education<\/span> in the same academic year, less a fee to be determined by the board<\/span>. In no event, however, shall the benefit paid on any prepaid tuition contract<\/span> entered into prior to July 1, 2019, be less than the sum of tuition prepayments made and a reasonable return on such prepayments to be determined by the board<\/span>, less any fees determined by the board<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> In addition to the provisions required by subsection A, each prepaid tuition contract<\/span> entered into on or after July 1, 2019, shall include provisions for the application of tuition prepayments, at a rate equal to the percentage of enrollment-weighted average tuition at public institutions of higher education to be determined by the board<\/span>, at (i) public institutions of higher education, (ii) accredited nonprofit independent or private institutions of higher education, and (iii) non-Virginia public and accredited nonprofit independent or private institutions of higher education<\/span>. In no event, however, shall the benefit paid on any prepaid tuition contract<\/span> entered into on or after July 1, 2019, be less than tuition prepayments made, less any fees as determined by the board<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> All prepaid tuition contracts<\/span> and savings trust agreements<\/span> shall specifically provide that if after a specified period of time the contract or savings trust agreement<\/span> has not been terminated and the qualified beneficiary<\/span>’s rights have not been exercised, the board<\/span>, after making a reasonable effort to contact the purchaser<\/span> or contributor<\/span> and the qualified beneficiary<\/span> or their agents, shall report such unclaimed moneys to the State Treasurer pursuant to § 55.1-2524<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> 1. Notwithstanding any provision of law<\/span> to the contrary, money in the Plan<\/span> is exempt from creditor<\/span> process, is not liable to attachment<\/span>, garnishment<\/span>, or other process, and shall not be seized, taken, appropriated, or applied by any legal or equitable<\/span> process or operation of law<\/span> to pay any debt or liability of any purchaser<\/span>, contributor<\/span>, or beneficiary. Unless required by federal law<\/span>, the Commonwealth, its agencies, and its instrumentalities shall not seek payment pursuant to 26 U.S.C. \u00a7 529A from any ABLE savings trust account<\/span><\/span> or its proceeds for benefits provided to the beneficiary of the account and shall not undertake estate recovery from any ABLE savings trust account<\/span><\/span> pursuant to 26 U.S.C. \u00a7 529A. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Unless prohibited by federal law<\/span>, the beneficiary of an ABLE savings trust account<\/span><\/span> may appoint a survivor. In the event of the beneficiary’s death, if the survivor is (i) an eligible individual, as defined in 26 U.S.C. § 529A(e), then such survivor shall become the beneficiary of the ABLE savings trust account<\/span><\/span> or (ii) not an eligible individual, as defined in 26 U.S.C. § 529A(e), then any proceeds remaining after final distributions have been made on behalf of the deceased beneficiary shall be distributed to the survivor and the account shall be closed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> Notwithstanding any other provision of state law<\/span> that requires consideration of one or more financial circumstances of an individual for the purpose of determining (i) the individual’s eligibility to receive any assistance or benefit pursuant to such provision of state law<\/span> or (ii) the amount of any such assistance or benefit that such individual is eligible to receive pursuant to such provision of state law<\/span>, any (a) moneys in an ABLE savings trust account<\/span><\/span> for which such individual is the beneficiary, including any interest on such moneys, (b) contributions to an ABLE savings trust account<\/span><\/span> for which such individual is the beneficiary, and (c) distribution for qualified disability expenses for such individual from an ABLE savings trust account<\/span><\/span> for which such individual is the beneficiary shall be disregarded for such purpose with respect to any period during which such individual remains the beneficiary of, makes contributions to, or receives distributions for qualified disability expenses from such ABLE savings trust account<\/span><\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> No prepaid tuition contract<\/span> or savings trust account<\/span> shall be assigned for the benefit of creditors<\/span>, used as security or collateral<\/span> for any loan, or otherwise subject to alienation, sale, transfer, assignment, pledge, encumbrance, or charge. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> The board<\/span>’s decision on any dispute, claim, or action arising out of or relating to a prepaid tuition contract<\/span> or savings trust agreement<\/span> made or entered into pursuant to this chapter or benefits under such prepaid tuition contract<\/span> or savings trust agreement<\/span> shall be considered a case decision as defined in § 2.2-4001<\/a> and all proceedings related to such dispute, claim, or action shall be conducted pursuant to Article 3 (§ 2.2-4018<\/a> et seq.) of the Administrative Process Act. Judicial review shall be provided exclusively pursuant to Article 5 (§ 2.2-4025<\/a> et seq.) of the Administrative Process Act. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPREPAID TUITION CONTRACTS AND COLLEGE AND ABLE SAVINGS TRUST AGREEMENTS (\u00a7\n23.1-707)\n\nA. Each prepaid tuition contract made pursuant to this chapter shall include the\nfollowing terms and provisions:\n\n 1. The amount of payment or payments and the number of payments required from\n a purchaser on behalf of a qualified beneficiary;\n\n 2. The terms and conditions under which purchasers shall remit payments,\n including the dates of such payments;\n\n 3. Provisions for late payment charges, defaults, withdrawals, refunds, and\n any penalties;\n\n 4. The name and date of birth of the qualified beneficiary on whose behalf the\n contract is made;\n\n 5. Terms and conditions for a substitution for the qualified beneficiary\n originally named;\n\n 6. Terms and conditions for termination of the contract, including any\n refunds, withdrawals, or transfers of tuition prepayments, and the name of the\n person entitled to terminate the contract;\n\n 7. The time period during which the qualified beneficiary is required to claim\n benefits from the Plan;\n\n 8. The number of credit hours or quarters, semesters, terms, or units\n contracted for by the purchaser, as applicable;\n\n 9. All other rights and obligations of the purchaser and the trust; and\n\n 10. Any other terms and conditions that the board deems necessary or\n appropriate, including those necessary to conform the contract with the\n requirements of § 529 of the Internal Revenue Code of 1986, as amended,\n which specifies the requirements for qualified state tuition programs.\n\nB. Each college savings trust agreement made pursuant to this chapter shall\ninclude the following terms and provisions:\n\n 1. The maximum and minimum contribution allowed on behalf of each qualified\n beneficiary for the payment of qualified higher education expenses, as that\n term is defined in § 529 of the Internal Revenue Code of 1986, as\n amended, or other applicable federal law;\n\n 2. Provisions for withdrawals, refunds, transfers, and any penalties;\n\n 3. The name, address, and date of birth of the qualified beneficiary on whose\n behalf the savings trust account is opened;\n\n 4. Terms and conditions for a substitution for the qualified beneficiary\n originally named;\n\n 5. Terms and conditions for termination of the account, including any refunds,\n withdrawals, or transfers, and applicable penalties, and the name of the\n person entitled to terminate the account;\n\n 6. The time period during which the qualified beneficiary is required to use\n benefits from the savings trust account;\n\n 7. All other rights and obligations of the contributor and the Plan; and\n\n 8. Any other terms and conditions that the board deems necessary or\n appropriate, including those necessary to conform the savings trust account\n with the requirements of § 529 of the Internal Revenue Code of 1986, as\n amended, or other applicable federal law.\n\nC. Each ABLE savings trust agreement made pursuant to this chapter shall include\nthe following terms and provisions:\n\n 1. The maximum and minimum annual contribution and maximum account balance\n allowed on behalf of each qualified beneficiary for the payment of qualified\n disability expenses, as defined in § 529A of the Internal Revenue Code of\n 1986, as amended, or other applicable federal law;\n\n 2. Provisions for withdrawals, refunds, transfers, return of excess\n contributions, and any penalties;\n\n 3. The name, address, and date of birth of the qualified beneficiary on whose\n behalf the savings trust account is opened;\n\n 4. Terms and conditions for a substitution for the qualified beneficiary\n originally named;\n\n 5. Terms and conditions for termination of the account, including any\n transfers to the state upon the death of the qualified beneficiary, refunds,\n withdrawals, transfers, applicable penalties, and the name of the person\n entitled to terminate the account;\n\n 6. The time period during which the qualified beneficiary is required to use\n benefits from the savings trust account;\n\n 7. All other rights and obligations of the contributor and the Plan; and\n\n 8. Any other terms and conditions that the board deems necessary or\n appropriate, including those necessary to conform the savings trust account\n with the requirements of § 529A of the Internal Revenue Code of 1986, as\n amended, or other applicable federal law.\n\nD. In addition to the provisions required by subsection A, each prepaid tuition\ncontract entered into prior to July 1, 2019, shall include provisions for the\napplication of tuition prepayments (i) at accredited nonprofit independent or\nprivate institutions of higher education, including actual interest and income\nearned on such prepayments, and (ii) at non-Virginia public and accredited\nnonprofit independent or private institutions of higher education, including\nprincipal and reasonable return on such principal as determined by the board.\nPayments authorized for accredited nonprofit independent or private institutions\nof higher education shall not exceed the projected highest payment made for\ntuition at a public institution of higher education in the same academic year,\nless a fee to be determined by the board. Payments authorized for non-Virginia\npublic and accredited nonprofit independent or private institutions of higher\neducation shall not exceed the projected average payment made for tuition at a\npublic institution of higher education in the same academic year, less a fee to\nbe determined by the board. In no event, however, shall the benefit paid on any\nprepaid tuition contract entered into prior to July 1, 2019, be less than the\nsum of tuition prepayments made and a reasonable return on such prepayments to\nbe determined by the board, less any fees determined by the board.\n\nE. In addition to the provisions required by subsection A, each prepaid tuition\ncontract entered into on or after July 1, 2019, shall include provisions for the\napplication of tuition prepayments, at a rate equal to the percentage of\nenrollment-weighted average tuition at public institutions of higher education\nto be determined by the board, at (i) public institutions of higher education,\n(ii) accredited nonprofit independent or private institutions of higher\neducation, and (iii) non-Virginia public and accredited nonprofit independent or\nprivate institutions of higher education. In no event, however, shall the\nbenefit paid on any prepaid tuition contract entered into on or after July 1,\n2019, be less than tuition prepayments made, less any fees as determined by the\nboard.\n\nF. All prepaid tuition contracts and savings trust agreements shall specifically\nprovide that if after a specified period of time the contract or savings trust\nagreement has not been terminated and the qualified beneficiary’s rights\nhave not been exercised, the board, after making a reasonable effort to contact\nthe purchaser or contributor and the qualified beneficiary or their agents,\nshall report such unclaimed moneys to the State Treasurer pursuant to §\n55.1-2524.\n\nG. 1. Notwithstanding any provision of law to the contrary, money in the Plan is\nexempt from creditor process, is not liable to attachment, garnishment, or other\nprocess, and shall not be seized, taken, appropriated, or applied by any legal\nor equitable process or operation of law to pay any debt or liability of any\npurchaser, contributor, or beneficiary. Unless required by federal law, the\nCommonwealth, its agencies, and its instrumentalities shall not seek payment\npursuant to 26 U.S.C. \u00a7 529A from any ABLE savings trust account or its\nproceeds for benefits provided to the beneficiary of the account and shall not\nundertake estate recovery from any ABLE savings trust account pursuant to 26\nU.S.C. \u00a7 529A.\n\n 2. Unless prohibited by federal law, the beneficiary of an ABLE savings trust\n account may appoint a survivor. In the event of the beneficiary’s death,\n if the survivor is (i) an eligible individual, as defined in 26 U.S.C. §\n 529A(e), then such survivor shall become the beneficiary of the ABLE savings\n trust account or (ii) not an eligible individual, as defined in 26 U.S.C.\n § 529A(e), then any proceeds remaining after final distributions have\n been made on behalf of the deceased beneficiary shall be distributed to the\n survivor and the account shall be closed.\n\nH. Notwithstanding any other provision of state law that requires consideration\nof one or more financial circumstances of an individual for the purpose of\ndetermining (i) the individual’s eligibility to receive any assistance or\nbenefit pursuant to such provision of state law or (ii) the amount of any such\nassistance or benefit that such individual is eligible to receive pursuant to\nsuch provision of state law, any (a) moneys in an ABLE savings trust account for\nwhich such individual is the beneficiary, including any interest on such moneys,\n(b) contributions to an ABLE savings trust account for which such individual is\nthe beneficiary, and (c) distribution for qualified disability expenses for such\nindividual from an ABLE savings trust account for which such individual is the\nbeneficiary shall be disregarded for such purpose with respect to any period\nduring which such individual remains the beneficiary of, makes contributions to,\nor receives distributions for qualified disability expenses from such ABLE\nsavings trust account.\n\nI. No prepaid tuition contract or savings trust account shall be assigned for\nthe benefit of creditors, used as security or collateral for any loan, or\notherwise subject to alienation, sale, transfer, assignment, pledge,\nencumbrance, or charge.\n\nJ. The board’s decision on any dispute, claim, or action arising out of or\nrelating to a prepaid tuition contract or savings trust agreement made or\nentered into pursuant to this chapter or benefits under such prepaid tuition\ncontract or savings trust agreement shall be considered a case decision as\ndefined in § 2.2-4001 and all proceedings related to such dispute, claim,\nor action shall be conducted pursuant to Article 3 (§ 2.2-4018 et seq.) of\nthe Administrative Process Act. Judicial review shall be provided exclusively\npursuant to Article 5 (§ 2.2-4025 et seq.) of the Administrative Process\nAct.\n\nHISTORY: 1994, c. 661, \u00a7 23-38.81; 1995, c. 315; 1997, cc. 785, 861; 1999, cc.\n485, 518; 2000, cc. 382, 400; 2015, cc. 227, 311; 2016, cc. 588, 639; 2019, cc.\n803, 804; 2020, c. 923.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}