Exemptions

Employee Stock Purchase Plans Are Not Exempt Assets

A client asked me during a consultation whether his employee stock purchase plan was an exempt (“ESSP”)  asset.  The client’s ESSP was provided by his employer. The employer is a publically traded company. The ESSP plans provides employees the opportunity to purchase employer stock at a ten percent discount to current market value.  The employee…

United States May Garnish Wages of Head of Household To Collect Criminal Restitution

A client entered into a criminal plea agreement three years ago stemming from his violation of federal securities laws. The plea agreement included restitution to the victims of his wrongdoing. There is a money judgment against the client for restitution. The client wants to know if the restitution judgment may be enforced against exempt assets,…

May Receiver Deny Ponzi Recovery Distributions To Self-Directed IRA Investor?

A financial adviser client sold an investment opportunity to his own clients which, unknown to him at the time, was a ponzi scheme. A receiver was appointed over ponzi assets. In addition to promoting the investment scheme to his own clients, my client invested his own money from his self-directed IRA. The receiver does not…

Purchase of Annuities Before Becoming Florida Residents

Two clients had the same question last week about purchasing annuities. Both client were planning to move to Florida from another state where judgments were about to be entered against them. They are interested in buying annuities which are exempt under Florida law. They want to know if their annuities would be exempt in Florida…

Can IRA Be Sued For As A Recipient of a Fraudulent Transfer?

A new client invested in a ponzi scheme. He withdrew his investment, including a “profit” just before the ponzi scheme collapsed. The SEC appointed a receiver to go after investors who received profits as fraudulent transfers. Many courts have held that ponzi profits are fraudulent transfers that may be recovered to repay other investors. This…

Florida Exemption of Other States’ 529 College Plans

Client lives in California and has purchased a Virginia based 529 college savings.  His financial adviser told him that Virginia plans offer advantageous investment options. The client says that Virginia law provides that Virginia 529 plans are exempt from creditor claims. The clients asks about the protection of his Virginia plan under California and Florida…