Are Annuities Exempt From Creditors?
Yes…annuities can be exempt under State law, under certain circumstances.
Many people have gotten into legal trouble by TRYING to exempt assets after the problem occurs. Largely due to insurance agents trying to sell annuities to the old & frail for Medicaid asset exemption. The Medicaid financial review board can take your house, if they feel the client has illegally exempted an asset. Many people who are getting a divorce, shuffle assets into annuities…only to get into a worse position, if the spouse can prove to the court that the plaintiff (as example) was trying to fraudulently exempt an asset from a divorce proceeding. Be careful…seek “qualified” legal council before trying any advanced asset protection.
As a rule of thumb, if it already happened…it’s too late to use annuities to exempt the assets. Attorneys will tell you need to invest in annuities (1 year to 8 years) before the problem occurs.
If you’re going to invest in annuities, with the sole intention of exempting assets from “future” creditors…get a legal document signed by an attorney that this investment to exempt assets from creditors is legal and ok.
Sincerely,
John Bagwell
The Truth About Financial Products.com
www.thetruthaboutfinancialproducts.com