Asset Protection - Annuity and/or LI

[scagnt83]

But even then, just because it's protected, doesn't mean the plan owner can access the funds without creditor intervention.

Years ago, I helped someone with an IRA transfer from a brokerage to a variable annuity. The amount was about $300,000 and Met Life was having a "6-6-6" deal: 6% bonus, 6% income step-ups, and 6% income for life.

The brokerage was already with our firm. But once transfer paperwork was submitted, I got a call from the transfer desk saying that the CA child support department has a lien (or other claim) on the funds for $15,000 (or whatever). I contacted the client and asked if he still wanted to go through with the transfer and he did. (It was rather cool that the "bonus" more than compensated for the amount of child support that still needed to be paid.)

So while assets may be shielded from creditors... that doesn't necessarily mean that they have access to those funds without creditor intervention. Which was why OJ Simpson turned everything into SPIAs - so he can get the income.

This was in California and obviously not to be taken as legal advice.

An IRA is not a Qualified Plan, it is a Qualified Retirement Account, but not a Qualified Retirement Plan. There is a difference.

IRAs do not provide the same protection as a Qualified Plan.

 

[Mike Siegal]

You're incorrect.

Florida allows you to not have malpractice as long as you have something like $250K in assets.

Many ObGyns and surgeons don't have malpractice insurance in South Florida.
The premium for an ObGyn can be as high as $170K or so.

My father is an ObGyn and he doesn't have it.

Some doctors even have signs in the waiting room stating that they don't carry malpractice insurance. I've been to several of them.

And yes, these doctors still have hospital privileges.

I'm not licensed in that area BUT I believe this is the same type of insurance called 'professional liability???'

Correct?

 

[J2727]

I'm not licensed in that area BUT I believe this is the same type of insurance called 'professional liability???'

Correct?

Yes, correct.