annuities exposure to lawsuits?

Jul 20, 2009 2 Replies

How exposed are annuities to lawsuits as opposed to savings? I don't suppose they have explicit legal protection such as a house does in Texas or Florida, but is there a customary or statistical pattern?



Comes to mind for a case where someone doesn't want some of the more obscure or umbrella insurance coverages. But in the unlikely event of an unwarranted/predatory lawsuit, can that person somewhat shield some of their savings by jamming them into a fixed lifetime annuity, for example? If that annuity is practically the only income for that person, will it be seen less as less ripe for the plucking than savings would be?



In addition to considering lawsuits, depending on your situation, you might need to also think about Medicaid recapture.

Check to see if your library has a copy of Asset Protection, Concepts & Strategies for Protecting Your Wealth by Jay D. Adkisson and Christopher M. Riser. Many libraries can order books from other branches. Pages 264 to 271 discuss annuities. Laws do vary by state and living in Texas, Florida or Michigan might be a very good idea. It is a difficult area as the law wants people to pay their debts but doesn?t want people being turned into paupers and put on the public dole. I?m not an attorney, so you should see one. Nor am I any sort of professional advisor.

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