[CLBS] Annuity Exemptions

[Christopher Williams]

What does distribution of the non-exempt portion of an annuity look like in
a Chapter 7 bankruptcy?

Idaho Code 41-1836 exempts the proceeds of an annuity up to $1,250 per
month.  Judge Pappas touched on this exemption in *In re: Baldwin*, Case
No.12-40060 (Bankr. D. Idaho 2012), but I cannot find any case law on what
the Chapter 7 Trustee can or will demand through the administration of the
bankruptcy case if there is a lifetime annuity with a monthly payment that
exceeds $1,250.

The two scenarios that come to mind are 1) Trustee could keep the case open
for the remainder of the Debtor's life and collect the amount above and
beyond the $1,250 (this seems too absurd to be realistic), or 2) some sort
of estimate of the remainder of Debtor's life would be calculated and
payment would be made of the estimated non-exempt portion of the annuity
prior to the case's closing (this appears to have a lot of uncertainty for
the Debtor when deciding to file, and a lump sum payment like that would
typically be outside of the realm of possibility for a Chapter 7 Debtor).

Any personal experiences would be appreciated very much.

-- 
Christopher Williams
Attorney
Post Falls Law
(208) 262-3893