Cash Value Life Insurance As a Seized Asset

[chrisc25]

I'm doing some research and was hoping someone could answer a question for me:
Can authorities access one's cash value life insurance and seize it as an asset if the owner has been found in legal trouble?

 

[STIBROKER]

no...................

 

[LGilmore]

Only Uncle Sam, and they very rarely do it as it could be considered harming an innocent third party.

While it may depend on which state you reside in, no private individual or entity can sieze or lean cash values.

This is also one of many reasons the very rich buy cash value life.

 

[Franz Kafka]

Cash value can ABSOLUTELY be subject to garnishment depending on the state. Federal bankruptcy exemption is around $10,000 and each state has its own exemption amount.

State Exemption Chart on Creditor-Debtor Issues

 

[Focus LTC]

Only Uncle Sam, and they very rarely do it as it could be considered harming an innocent third party.
.

The IRS will seize your CV before they put a lean on your property or even garnish your wages. It is liquid and provides instantaneous satisfaction of debt. Its cash first, then garnishment, then property.

From their perspective, their conscience is clean. They did not harm the innocent third party, the delinquent taxpayer did.

Of course, they can only take it if they know about it.

 

[ScottLFB]

I'm doing some research and was hoping someone could answer a question for me:
Can authorities access one's cash value life insurance and seize it as an asset if the owner has been found in legal trouble?

"Doing some Research" hmmm.. Let's hear the details. What are you in trouble for and how much do you need to hide from the government?

 

[b61mack]

now if you file for bankruptcy, the court can take your future commission checks and can sell your book of business, it all depends on your creditors

 

[BNTRS]

The answer, as already suggested, depends entirely on the state in which you live (actually, the contract state of the insurance policy). In my state, the cash value can't be touched. Next door, in the Live Free or Die state, not so much.