Bankruptcy, Asset Protection, and “Pre”-Planning
Traditional personal injury structured settlements and the annuities that fund them are exempt from creditors, judgments, and bankruptcy. That is because the injured plaintiff/claimant/annuitant is not the owner of the annuity contract funding the payment streams.
However, for people in high profile, or high-risk professions (especially doctors, but also lawyers, architects, builders, athletes and entertainers) that have a higher than normal possibility of negligence claims that could exceed the limits of available insurance, Pre-Planning (way, way in advance of a potential or actual occurrence) may provide protection for some assets.
The strategy involves shifting assets into financial vehicles that are exempt, under state law, from bankruptcy creditors. Some states (e.g. Florida) have homestead laws that exempt the principal residence. Most other states exempt cash values in life insurance and/or annuity contracts.
Care should be taken if contemplating this type of pre-event planning, and a LEGAL EXPERT consulted, to insure that all state laws are observed.
Our area of expertise is in providing the various annuity and life insurance contracts, once all legal requirements have been satisfied.
Settlement Professionals does not endorse or engage in this type of planning for individuals already in a bankruptcy proceeding, or within the “look-back” period immediately preceding a bankruptcy filing.
If you are an individual in a high-profile or high-risk profession, and have substantial liquid assets at risk, contact me for a confidential preliminary consultation. Our fee for this service is $5,000.
