Advanced Underwriting Consultants

Question of the Day – April 26

Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax and technical questions posed by producers.  Here’s the question of the day.

Question: Can you give a definite answer as to whether the cash value within Variable Universal Life & Whole Life Policy assets are sheltered from creditors in my client’s state of residence during life if owned outside of an ILIT?

Answer: It’s impossible to give blanket answers to creditor protection questions.  All such questions depend on the facts and circumstances the client is facing, including


  • The nature of the creditor claim
  • The identity of the creditor
  • The timing of the transfer to the life policy (or other potentially exempt asset)

Only the client’s attorney can give definite answers to the client’s specific situation.

However, it is possible to give probable answers and direction to clients about these issues.  The place we go for such general information is this website.

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.