Insurance Benefit Garnishment Rules

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Summary

Life insurance death benefits in South Carolina are generally exempt from creditor claims if the beneficiary is a spouse, child, or dependent. If the insureds estate is the beneficiary, creditors may claim the proceeds. Kentucky residents should consult local attorneys for specific advice. Banks typically do not check for judgments when cashing large checks, but policies vary. Keeping large sums of cash is not illegal but poses risks and may raise questions under anti-money laundering regulations.

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Can an insurance benefit be garnished by a creditor?
Hello ****, in South Carolina, insurance benefits are generally exempt from garnishment by creditors. However, there might be exceptions depending on the situation. Could you please provide more information about the type of insurance benefit you're referring to?
Death Benefit
Hello ****, in South Carolina:
- Life insurance proceeds, including death benefits, are typically exempt from the claims of creditors.
- This exemption applies if the beneficiary is a spouse, child, or dependent of the insured.
- However, if the insured listed his/her estate as the beneficiary, then the proceeds may be subject to the claims of creditors.
The insured died in South Carolina. I am the beneficiary of the policy, and I live in Kentucky. Also, I have two judgments against me outstanding in Kentucky.
Hello ****, given your situation:
- The fact that you reside in Kentucky and have judgments against you there may not affect the exemption in South Carolina.
- However, Kentucky law may have different rules, and this could potentially affect your situation.
- It is best to consult with a local attorney in Kentucky to understand your specific circumstances better.
Can I have the insurance company pay my benefit to a third party or a company?
Hello ****, generally, you can assign your life insurance proceeds to a third party or a company. However, the insurance company and the third party must agree to this assignment. It's important to consult with a local attorney to understand the implications of such an action.
Do insurance companies run a check for outstanding judgments before paying death benefits?
Hello ****, typically, insurance companies do not check for outstanding judgments against beneficiaries before paying death benefits. However, they do have a process to verify the claim and the identity of the beneficiary. It's still recommended to consult with a local attorney to understand your specific situation better.
Gotcha...
Hello ****, I'm glad I could help. If you have further questions or need more information, don't hesitate to ask. Remember, consulting with a local attorney for your specific situation is always a good idea.
One more question...
Of course, ****. Feel free to ask your question. I'm here to help.
Will banks allow me to cash a $*,*.* check?
Hello ****, in general, banks should be able to cash a check of that amount. However, each bank has its own policies. It's best to contact your bank to verify their process and requirements for cashing large checks.
Do banks check for judgments if you attempt to cash $*,*.* checks?
Hello ****, generally, banks do not check for personal judgments when you attempt to cash a check. However, each bank has its own policies and procedures. It is recommended to contact your bank to understand their specific rules regarding this.
Is it illegal to keep large sums of cash in your possession?
Hello ****, it's not illegal to keep large sums of cash in your possession. However, carrying large amounts of cash can pose risks such as loss or theft. Also, depositing large sums of cash in a bank could raise questions under anti-money laundering regulations.
Gotcha...
I'm glad to have been of help, ****. If you have any more questions or need further clarification, don't hesitate to ask. Remember, it's always advisable to consult with a local attorney regarding your specific situation. Answer: No more questions. Thank you.
Will do...
Hello ****, you're welcome! If you have any more questions in the future, don't hesitate to reach out. Remember, always consult with a local attorney for specific legal advice. Take care!