Miami Bankruptcy Lawyer - Florida Exemption of Life Insurance

Submitted by Anonymous (not verified) on Thu, 10/10/2013 - 02:57
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Miami bankruptcy lawyer Jordan E. Bublick has over 25 years of experience in filing chapter 13 and chapter 7 bankruptcy cases. He has filed over 8,000 bankruptcy cases. www.bublicklaw.com

Florida Statutes provide for certain limited exemptions of life insurance.

Cash Surrender Value

Florida Statutes section 222.14 provides that the "cash surrender value" of life insurance "issued" upon the lives of citizens or resident of Florida is exempt from the claims of

  • creditors of the person whose life is so insured (some courts hold insured must also be the owner of policy)
  • creditors of the beneficiary

unless the policy was effected for the creditor's benefit.

Florida courts broadly construe the required nature of the "form" of the "cash surrender value" to include any cash value that may be obtained either by means of negotiation or pursuant to an agreement for surrendering the policy. One court held that this exemption applied to a certificate of deposit purchased with the cash surrender proceeds of the life insurance policy.

It should be noted that this statutory exemption is subject to disallowance if created by the conversion of non-exempt funds into exempt assets in contravention of Florida Statute sections 222.29 and 222.30.

Proceeds of Life Insurance - Exempt from Claims of Insured but Not Claims of Beneficiary

Florida Statutes section 222.13 provides for the exemption of the proceeds of life insurance from the creditors of the "insured" upon the death of a person residing in Florida. Courts hold that this statute provides for the exemption from the claims of creditors of the insured but not from the claims of the creditors of the beneficiary. This means that the proceeds are available to the claims of the beneficiary's creditors. Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.