Do they attach Life Insurance Proceeds to pay judgements?

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PostPosted: Mon Nov 17, 2008 12:30 pm   Post subject: Do they attach Life Insurance Proceeds to pay judgements?  

My sister has a judgement filed against her. She is worried about being listed as a benficiary on my brother's life insurance because it might be attached. If I don't list her am I going to get in trouble for not doing so?

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PostPosted: Mon Nov 17, 2008 1:08 pm   Post subject:   

As far as I understand it, life insurance proceeds cannot ever be attached for any reason...more learned agents hopefully will respond..in the meanwhile check the net for your states regulations/laws...google something like, ''collecting judgement in state of---'' or ways to collect something like that, but i THINK she's in the clear as far as this goes...



what is the judgement for? that may matter



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PostPosted: Mon Nov 17, 2008 7:01 pm   Post subject:   

Going out on a slight limb here but garnishment would mean that the person holding the judgment would need to be paid directly, before the party was paid. For example, the person holding the judgment would send a Wit of Garnishment to an employer and the employer would be required to comply. Who a person works for can probably be found out through the state or the IRS. But how is anyone going to know you are listed as a beneficiary on an insurance policy? I can't see any way to find out about this. I'm not saying that it is possible to attache garnishment to a life policy, I'm just saying that I don't think it's practical.



A judgement is usually attached to assets, bank accounts, and through wage garnishment. These can be located.

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PostPosted: Mon Nov 17, 2008 7:21 pm   Post subject:   

Some states exclusion also apply. Here in PA if there is a garnishment it can only be for child support or taxes. Now judgements are another story. With those they can attatch bank accounts or if you ever come into a large sum f money due to law suits, they have to satisfy your judgement before paying you. A few years back there was a relative on my hubby's side that had a judgement. She recieved a money from her fathers life insurance policy with no hold ups. You could try to put your state in as Lori said because I know a lot of this depends on the state you are actually in. Different states..different laws.

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PostPosted: Tue Nov 18, 2008 12:57 am   Post subject:   

Good point T, how would/could they ever find out if it were attachable (which I'm all but positive it is not)....



OP has your sister paid any of this judgement at all?



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PostPosted: Tue Nov 18, 2008 4:35 am   Post subject:   

As far I know that the life policy benefits aren't paid till the insured dies. Hence, your sister isn't going to get the money before the death of the brother. Therefore, garnishing the life insurance proceeding is out of question, IMO. May be some life agent will be of better help.



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PostPosted: Tue Nov 18, 2008 5:41 pm   Post subject:   

Surely they can not tax before hand. I am thinking she was looking into the future if anything happens..at least I hope so.

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PostPosted: Thu Nov 20, 2008 10:40 am   Post subject:   

Quote:
Do they attach Life Insurance Proceeds to pay judgements?


Not in Florida.



222.13 Life insurance policies; disposition of proceeds.--



(1) Whenever any person residing in the state shall die leaving insurance on his or her life, the said insurance shall inure exclusively to the benefit of the person for whose use and benefit such insurance is designated in the policy, and the proceeds thereof shall be exempt from the claims of creditors of the insured unless the insurance policy or a valid assignment thereof provides otherwise. Notwithstanding the foregoing, whenever the insurance, by designation or otherwise, is payable to the insured or to the insured's estate or to his or her executors, administrators, or assigns, the insurance proceeds shall become a part of the insured's estate for all purposes and shall be administered by the personal representative of the estate of the insured in accordance with the probate laws of the state in like manner as other assets of the insured's estate.







222.14 Exemption of cash surrender value of life insurance policies and annuity contracts from legal process.--



The cash surrender values of life insurance policies issued upon the lives of citizens or residents of the state and the proceeds of annuity contracts issued to citizens or residents of the state, upon whatever form, shall not in any case be liable to attachment, garnishment or legal process in favor of any creditor of the person whose life is so insured or of any creditor of the person who is the beneficiary of such annuity contract, unless the insurance policy or annuity contract was effected for the benefit of such creditor.


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PostPosted: Thu Nov 20, 2008 10:56 am   Post subject:   

Quote:
Not in Florida.




Hey Gary, does this imply that judgement can be attached against the life proceeds? which are the states that have such law? & what will be the consequences if a judgement is placed against the life insurance benefits of the recipient?

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PostPosted: Fri Nov 21, 2008 1:10 am   Post subject:   

Quote:
Hey Gary, does this imply that judgement can be attached against the life proceeds?


No.



The statute clearly states:

...shall not in any case be liable to attachment, garnishment or legal process in favor of any creditor of the person whose life is so insured or of any creditor of the person who is the beneficiary of such annuity contract,...



Quote:
which are the states that have such law?


I don't understand this question because of your first question where I believe you have somehow read that Florida Statute to mean just the opposite of what it means. So are you asking which states EXEMPT life insurance proceeds or which states allow credtior claims and judgments on life insurance proceeds?



Quote:
what will be the consequences if a judgement is placed against the life insurance benefits of the recipient?


In Florida this can't happen. Life insurance and annuity proceeds are EXEMPT in Florida.


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PostPosted: Fri Nov 21, 2008 1:11 am   Post subject:   

Thats how it sounds..kets see what Gary says. It may be like this in all states.

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PostPosted: Fri Nov 21, 2008 4:14 am   Post subject:   

Good post Gary!



I personally do not know of a state that allows liens to be placed on life insurance proceeds. I'll bet there's a federal statute somewhere which specifically addresses that issue.



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PostPosted: Fri Nov 26, 2010 2:32 pm   Post subject: child support judgements  

Can you collect from a life insurance policy in the state of texas if its a childsupport judgement


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PostPosted: Thu Aug 25, 2011 2:59 am   Post subject: child support  

can you collect from a life ins policy in the state of arizona if its a child support judgement


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PostPosted: Wed Mar 18, 2015 9:59 pm   Post subject: judgement  

can beneficiary annuity payments be taken to satisfy a deficiency judgment in Florida. Annuity held in Rhode Island


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