Case Summary:
Trustee’s objection to debtors’ exemption of a “Flexible Premium Retirement Annuity” was overruled. The debtors purchased the annuity on the eve of bankruptcy, using proceeds of a loan they obtained by pledging non-exempt assets as collateral. The trustee’s objection was based upon the belief that the annuity could not be exempt because there was no limit on the amount of annual contributions. However, the Wisconsin legislature said “any annuity” in Wis. Stat. 815.18(3)(j), and placed no limitation upon the exemption other than that it “comply” with the Internal Revenue Code. The court would enforce the provision as written.
Statue/Rule References:
Wis. Stat. § 815.18 -- Exemptions
Key Terms:
Exemptions
Retirement/Pension Plans