A caller and prospective client called to ask whether his Florida annuity was exempt from creditors. The caller had purchased an annuity through the securities affiliate of his bank. The caller subsequently borrowed money from the bank, and the loan documents stated that the loan was secured by all assets held by the bank.
The caller believed his annuity was exempt because of the Florida statutes protecting annuities from creditors. But, he was concerned that the bank’s lending agreement gave the bank a security interest in the annuity.