Question re: AA suit and accounts

There is potential that a friend of mine would be sued for AA/CC. This person currently has stock that is ear-marked for a child’s college education, where the plan has been to move the stock into the child’s name (with my friend as custodian) but they’ve never gotten around to doing this. Would this money be safe from the lawsuit if it were in the child’s name? I’ve told my friend to hurry up and do this just in case but I thought I’d get a legal opinion on it first.

Your friend can attempt to protect the funds in this matter, however it may be seen as an attempt to protect assets.

Is that bad? What does that mean and what do they do in that situation? Are there steps she should take in transfering these accounts to ensure it doesn’t look bad?

Moving funds could be seen as an attempt to hide assets and may not be looked upon favorably, but it is not criminal. If your friend can prove this move was discussed prior to the separation/affair it would be less likely to look like an attempt to disguise assets.