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Barrister
Barrister, Attorney
Category: Legal
Satisfied Customers: 33798
Experience:  15 yrs practice, Civil, Criminal, Domestic, Realtor, Landlord 26 yrs
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Are variable annuity assets protected from confiscation under

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Are variable annuity assets protected from confiscation under CA law from creditors?
Hello and thank you for using JA! My goal is to provide you with excellent service and help with your legal problem.
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How is the variable rate annuity held? (by a person, corporation, LLC, etc.)
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Is it in the person's regular investment account, a 401K, an IRA, a revocable trust, an irrevocable trust, etc.?
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Thanks
Barrister
Customer: replied 3 years ago.


The VA is held by a person, not a corporation.


 


It is in their regular non-qualified investment account?

Thank you for that additional information. If the VA is held by an individual in their private non-retirement investment account, then it would be subject to creditor claims the same as any other asset if the individual was sued and the creditor got a judgment. The VA is just a type of investment, like a mutual fund or stocks are types of investments but it doesn't have any special protection from creditors unless it is in a protected account.
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If it was part of a retirement account like a 401K or an IRA, then it would be protected since those funds are not subject to garnishment by unsecured judgment creditors. But if it doesn't have the retirement account protection, it would be subject to seizure the same as a mutual fund, individual stocks, real estate or other investments to pay a judgment.
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Thanks
Barrister
Customer: replied 3 years ago.

What if it were in a Living Trust or an irrevocable trust?

Living trust....no protection from creditors as the assets are considered under the "dominion and control" of the grantor so are subject to creditor claims.
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Irrevocable trust...complete protection because the grantor surrenders all ownership interests in the assets that are placed into the trust due to its irrevocable nature.
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Thanks
Barrister
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