(a) A one-time lump-sum payment made from a HOPE trust account, as defined in subdivision (a) of Section 18997.51 of the Welfare and Institutions Code, shall be exempt without making a claim, except as provided in subdivision (b).
§ 704.235.One-Time Lump-Sum Payment Made From Hope Trust Account Exempt From Levy
Title 9. Enforcement of Judgments · Division 2 · Chapter 4. Exemptions · Article 3. Exempt Property · Enacted 2024 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 704.235 exempts a one-time lump-sum payment from a HOPE trust account without any claim, except against levies for child support, spousal support, family support, or criminal restitution, and requires a bank to treat a properly identified HOPE trust payment it receives directly from the state as exempt.
Full Text of § 704.235
(b) A one-time lump-sum payment described in subdivision (a) is not exempt from a levy in connection with child support, spousal support, family support, or a criminal restitution.
(c) A financial institution that receives a payment described in subdivision (a) directly from the state shall treat the payment as exempt from levy if it is designated "HOPE trust account payment" or if the payment is otherwise sufficiently identified to inform the financial institution that the payment is a HOPE trust account payment.
Plain-English Summary
HOPE trust accounts, a state program defined in the Welfare and Institutions Code, can pay out a one-time lump sum, and this section protects that payment from ordinary creditors. The lump-sum payment is exempt without the debtor filing a claim, subject to the exception in subdivision (b).
That exception carves out the same categories of support-related and restitution debts that appear throughout this article: the payment isn't exempt from a levy connected to child support, spousal support, family support, or criminal restitution. Outside those categories, the protection is automatic.
Subdivision (c) adds a practical rule for banks: when a financial institution receives a HOPE trust payment directly from the state, it must treat the money as exempt if it's labeled "HOPE trust account payment," or if it's otherwise identified clearly enough for the bank to recognize what it is — sparing the debtor from having to separately prove the exemption at the bank counter.
Frequently Asked Questions
Is a HOPE trust lump-sum payment protected from creditors?
Yes, without filing a claim, under § 704.235(a) — except for levies connected to child support, spousal support, family support, or criminal restitution.
Does my bank need to be told the money is exempt before it protects it?
If the payment comes directly from the state and is designated or otherwise identifiable as a HOPE trust account payment, subdivision (c) requires the bank to treat it as exempt.
Can this payment be taken to satisfy a child support order?
Yes. Subdivision (b) specifically excludes child support, spousal support, family support, and criminal restitution levies from the exemption.
Amendment History
Added by Stats 2024 ch 1010 (SB 242),s 2, eff. 1/1/2025.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: hope trust account exemption californialump sum payment exempt from creditors california