Under Florida Statute § 222.14, the proceeds of an annuity contract issued to a Florida resident are not subject to attachment, garnishment or other legal process in favor of any creditor of the annuity beneficiary unless the annuity contract was established for the benefit of such creditor. This means that Florida offers broad creditor protection for the beneficiary of an annuity.
Traditionally, an annuity is an financial product issued by a financial institution that entitles the purchasers of the annuity to a series of periodic payments. However, an annuity should not have to follow this exact format in order to be entitled to protection under Florida law and the Florida courts have held that any contractual right to a stream of payments, whether issued by a public company or a private individual, may qualify for protection from creditors.
As with most legal situations, the details matter. One should not seek to establish an annuity arrangement without consulting with an experienced asset protection attorney who understands the proper way to structure the transaction. Otherwise, protection from creditors may not be there when you need it most. Contact an Attorney in Jacksonville to learn how our custom drafted contracts and trust agreements can help you take advantage of Florida’s generous protection of annuities and achieve peace of mind for your estate plan.