finances and O.J. Simpson...

I don't think pensions can be subjected to a lawsuit. I also know he invested well when he was a player. If the investment went into an annuity, it's possible that is not touchable by lawsuit either.

NFL pension.

In the wake of the Las Vegas fiasco, I heard somewhere that his pension from the NFL is over $250k annually (unconfirmed). As the others said, this pension is creditor protected.

That is part of the whole cat and mouse game that OJ is playing with the Goldman family. The moment OJ uses his protected money, the asset may become unprotected. Goldman then steps in and files for seizure of the asset as part of the settlement of their civil lawsuit.

-john-

According to court TV it's 25,000 a month.

Are there any ways an individual can construct 'creditor protection' around money or money streams? It would seem that no such protection would exist as soon as money left any 'protection' and was in a person's control.

If he deposits a monthly pension check into a personal bank account, does that mean the creditors can then take the money from his account? Does it mean he would have to cash the check and then take all the cash home with him in a briefcase in order to protect it from creditors?

Yes. Or find some other way to hide the money so he can move it off-shore or into a protected asset before the Goldman family can attach it. BTW, this is a similar game to what folks on Welfare have to play each month. At in the two states where I frequent, folks who accept welfare are not allowed to have bank accounts, and if they have any money left at the end of the month, that amount is to be subtracted from the next month check. Now you know why they live month to month.

-john-

Living like that it is hard to understand how O.J. could ever buy a plane ticket to get to Las Vegas or anywhere else. The last I heard he was living in South Miami. I presume it would be difficult for him to have a credit card. I have known motels and other businesses that will not accept cash. It is either use a credit card or no sale.

I believe residential property in Florida is also protected against lawsuits.

-- Ron

I wonder if that applies to prepaid cards. For example, if you have a tax refund coming, some banks offer to set up a Mastercard or Visa account to receive the refund, you can even set up payroll direct deposit to these cards. They are specifically marketed to the "unbanked", those who for whatever reason do not have conventional checking accounts. These cards can be used just like credit cards as long as there is a balance, the primary drawback is that for cash, you either have to use an ATM and pay related fees, or get "cash back" from your everyday purchases.

-Mark Bole

While it may be possible in some cases, I don't think that is a concern for OJ. As we all acknowledged, the pension itself is untouchable (under ERISA). The money is safe both in and out of the pension. Whether we agree or disagree with this protection, look at it from the position of the lawmakers. Why even establish the protection, if the money can't ever be used?

A few states (including California and Florida) don't allow ANY of the distributions to be seized after withdrawal. In other states, the Judge will determine "reasonable living expenses". Any amount withdrawn over that figure may be seized.

Texas and Florida (and maybe others) also protect residences from seizure. This is the reason that OJ's Brentwood home and its contents were seized by the Goldman family, but his South Florida residence remains untouched.

Since the beginning there have been rumors that OJ moved assets overseas to hide them. Many countries simply do not honor American legal judgements and there is little we can do about it. However, the evasive action itself occurred in the US and is subject to prosecution. Proving OJ actually did this would be quite difficult, and regardless, I read the statute of limitations ran out years ago.

I've heard varying remarks about "qualified retirement accounts" might be protected in certain suits. There may be some dependencies such as (1) "state" (e.g. Texas and Florida protect 401Ks), (2) whether a plan is a ension, 401K, 403, IRA, annuity, etc, and (3) type of of lawsuit- federal taxes and shild support often override some protections. Like for example, could one pour everything into an immediate annuity if a judgement was imminent? People have done this homesteads in Florida.

I kindof have "one of everything" in the way of reitirement accounts and dont know the protection status of each. Is there are exhaustive list somewhere?

ERISA is the initial authority in creditor protection of retirement accounts in general. There are two types of retirement plans, ERISA and non-ERISA plans. ERISA plans are creditor protected while non-E plans are not. We often use the term loosely, but to technically be a "qualified plan" a retirement plan must comply with and adhere to section 401 or the Internal revenue code. All other plans are non- qualified. Therefore, IRAs, SEPs, SIMPLEs, annuities (under section

Note: 403b and 457 plans may or may not be ERISA plans. The IRS has issued guidance that by Jan, 1 2009 all 403b and 457 plans must have a written and adopted plan to comply with section 401 (this will make them "qualified"). As of now, most plans do not.

According to ERISA, funds are only protected while in the plan. Once they leave, they're fair game BASED ON FEDERAL LAW.

As given in the pre-emption principle, state law can be more restrictive than federal law, but not less so in that it violates the federal statute. Because of this principle, ERISA was intentionally written to be very broad and not overly protective. ERISA "got the ball rolling" but left it up to the states to decide how far they wanted to roll it. Most states do have additional exemptions and protection in place that pickup where ERISA left off.

As a result, the short answer to your question is: it depends! The state in question and the qualified status of your accounts will be the deciding factors. For Joe six pack this means that only his 401k will be proteted BY ERISA (and only while in the 401k). However, it is common for states to protect IRAs, life insurance cash value, SEPs, and annuities, even after withdrawal. Homestead exemptions also commonly protect residences up to a certain value (again dependent on locale).

I saw this summary:

Agreed. Note too that the site you linked is bankruptcy-centric (as bankruptcy is much more common an occurence). This brings the BAPCPA into play which gives even more protections to the debtor.

I don't know whether OJ ever declared bankruptcy or not. Offhand, I don't see why he should or how he even could.

Jeff (Enron) Skillings' home in Florida is an example of that.