How to Legally Attach a Judgment to an Annuity
Annuities are investments designed to provide an income at some point in a person's life. There are various types of annuities including employer-sponsored contribution plans as well as privately purchased annuities that are tax-deferred accounts offered by insurance companies. State laws vary, but federal bankruptcy courts provide a minimum of $1 million in protection on employer-based retirement. Nonqualified annuities don't have the same protections though most states look to protect reasonable amounts of assets set aside for retirement planning.
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Instructions
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Go to the courthouse where you received the judgment. Ask the court clerk for the forms to file a writ of execution. Writs follow the judgment order and give authorities such as the sheriff or financial institution representatives the right to place a lien or levy on an asset or collect it on your behalf.
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File the forms noting the annuity you want to attach a judgment on. The judge examines the state laws protecting retirement funds and inquires about other assets the party may have that are more accessible. If the annuity value or income stream is above state and federal protections, the judge may decide to approve the writ or execution. If the asset is under the protections, you may need to prove that the other party willingly placed all funds in the annuity to avoid collection.
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Obtain the writ of execution and serve it to the annuity administrator. The administrator must comply with the writ of execution. You may get a lump-sum payment or a series of payments as indicated by the writ of execution.
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