Possibility of an ERISA LTD Policy Benefits Converted to A Trust?

Jun 18, 2019

  1. traumaman
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    traumaman New Member

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    I am the beneficiary of an ERISA LTD plan that has been paying me monthly.

    If I were to lose a claim being made by a third party against me personally - could the LTD carrier be forced to pay my benefit or garnish that benefit on behalf of that third party?

    If so, my objective is to plan ahead to protect that benefit from a creditor i.e. is it likely my LTD carrier would be amenable to transferring the claim to my trust vs. paying it to me?

    I open to other suggestions that would effectively shield my benefit from a third party.
     
  2. leevena
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    leevena Guru

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    Great question, wrong place. You really do need an attorney to answer this.
     
    leevena, Jun 18, 2019
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  3. VolAgent
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    VolAgent Guru

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    Even if you can, you probably can't.

    Typically any transference of an asset to avoid its legal seizure is disallowed.

    Make sure to tell any attorney why, so you don't create a bigger problem than you plan to solve.
     
    VolAgent, Jun 19, 2019
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