Locked in LIF $ and Bankruptcy

October 30th, 2006 by Questions

Am I correct in thinking that my locked-in LIF money cannot be touched in bankruptcy proceedings?
Also, is the minimum payment I\’m required by law to take every year from my locked-in LIF money considered income?
Thanks so much for any info you can provide.

Questions

One Response to “Locked in LIF $ and Bankruptcy”



October 31, 2006 at 8:02 am, A licensed trustee said:

You are correct – the principle on deposit cannot be seized/withdrawn unless you have the right to withdraw it yourself. Even then, due to insurance laws, the principle probably is safe.

You are also correct that your annual withdrawal will be considered income. This is something to discuss with your trustee – presumably you can decide when the funds are withdrawn and your trustee expect you to make your annual withdrawal as soon as you are permitted to.

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