If you win a money judgment in court, the losing party rarely cuts you a check on the spot. To the contrary, you may still have to spend a lot of time and money finding and collecting the losing party’s assets. For anyone trying to enforce a money judgment, or for anyone trying to protect their assets from collection by a money judgment creditor, Illinois recently passed a significant new law.
Effective August 17, 2012, Illinois law exempts collection of some life insurance policies, endowment policies, and annuities if the proceeds are directed into a particular kind of trust. If, upon the death of a debtor, the proceeds of the policy would be directed to a revocable or irrevocable trust naming a close family member as the primary beneficiary, then such policy is exempt from “judgment, attachment, or distress for rent.” 735 ILCS 5/12-1001(f). The trust must name the insured’s spouse, child, parent, or other dependent as the primary beneficiary in order to be exempt.
The attorneys at DeBlasio & Gower LLC are experienced at collection of judgments. To schedule an appointment or to speak with one of our attorneys, call us at (630) 560-1123 or visit our website at https://www.dgllc.net We are here to help.
DISCLAIMER: This blog post is not legal advice and should not be relied on by anyone as legal advice in their particular situation. Furthermore, while DeBlasio & Gower LLC welcomes communications via its website, please be aware that communicating any information to DeBlasio & Gower LLC or any of its attorneys through its web site or via any other method without a formal engagement with the Firm does not constitute or create an attorney-client relationship between you (or any other users, senders or recipients) and DeBlasio & Gower LLC or any of its attorneys. For your protection, please do not send us confidential information until you have spoken with one of our lawyers and received authorization to send that information to our Firm. Thank you.