.jpg)
Protection of an annuity in Chapter 7
I would also read the annuity contract carefully. Many older people are
placed inappropriate deferred annuities, the only purpose of which is to
earn a very fat commission for the salesperson. However, as the deferral
period is often 10 years, it can affect a present value calculation. The
contractual conditions as to transferability and penalties for early
withdrawal are very important when looking at the impact of filing a
petition. These and other terms in the contract may create a large
discount from present value.
If you have any questions or concerns, please contact me.
Pat
Patrick T. Green, Esq.
Fitzgerald & Green
Attorneys at Law
1010 E. Union Street
Suite 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw.com
The post was migrated from Yahoo.
I have an older client who needs to file Chapter 7 but wanted to make sure certain funds are protected, specifically over $100,000 she placed in a personal (individual) annuity account more than 5 years ago, which she has not touched. CCP 704.115 states that certain retirement accounts/annuities are exempt from judgment, but wanted to make sure that her account, and the amount of her account, would be exempt in the Chapter 7.
Thoughts?
Stephen Stern
Law Office of Stephen M. Stern, PLC
The post was migrated from Yahoo.