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briarpatch

Life insurance payout still judgement proof if move funds?

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Hi, another question...

My Metlife life insurance payout was automatically added to a Metlife "Total Access Account" with an interest rate of .9% and no FDIC insurance. I would like to move this to a higher rate account that is FDIC insured.

I know that life insurance payouts are not taxable, and cannot be accessed by creditors (as we discussed partially here). NOTE: I live in the State of Nevada.

Having received the life insurance payout, if I now move the funds to an FDIC insured savings or money market account, will this then expose the money to judgements by creditors?

I know that as long as I have my Social Security Disability checks deposited directly into my checking account and don't move these funds into another account before spending them, they are not accessible to creditors. If I move these funds, they lose their judgement proof status.

Thanks.

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Don't take my word on this, but the banks will often garnish first and ask questions later.  I once had a bank account frozen over a judgment when I didn't even know I was sued.  

If this is a reasonable sum of money, it would make a lot of sense to work out a consultation with someone who could actually give you a knowledgeable answer based on your state laws and your individual situation.  Random people on the internet may or may not know the answer, and could inadvertently give you damaging advice.  We have seen that happen in the past.

There are times when you need an expert opinion.  This may be one of them.  

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2 hours ago, nobk4me said:

Maybe @Clydesmom would know?

No idea but my educated guess is if it stays in the Met Life account it is protected but as soon as it moves to a regular account it loses that status.  I would check with a lawyer to be certain.

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