William Powers, III, et al. v. William Powers, Jr.

William Powers, III, et al. v. William Powers, Jr., 23CVP-0159

Hearing: Claim of Exemption

Date: June 16, 2026

From the papers submitted, it appears Plaintiffs seek to levy payments from (1) a public retirement account; (2) social security; and (3) a life insurance policy or annuity.

Public Retirement Benefits: Pensions or retirement benefits payable to any person by a public retirement system are exempt without making a claim. (Code Civ. Proc., 704.110(b).) Benefits actually received by the judgment debtor are also exempt, but the debtor must file a timely claim. If the benefits have been deposited, they must be traceable. (Code Civ. Proc., § 704.110(d).)

Social Security Payments: Social security payments directly deposited by the government (or its agent) into deposit accounts are exempt in specific amounts without filing a claim. (Code Civ. Proc., § 704.080(b).) Any excess amounts in deposit accounts are also exempt if they are traceable to prior payments. In addition, excess amounts may be exempt under Code of Civil Procedure section 704.220 (minimum basic standard of adequate care) or section 704.225 (necessary for support).

Life Insurance/Annuity Policies and Payments: The debtor’s ownership interest (including cash surrender value) in unmatured life insurance policies is exempt without making a claim. (Code Civ. Proc., § 704.100(a).) However, the debtor must timely claim an exemption for the aggregate loan value of the unmatured policies and there is a maximum dollar limitation on the loan value exemption. (Code Civ. Proc., § 704.100(b).)

Benefits from a matured life insurance policy (including an annuity policy) are exempt to the extent reasonably necessary for the support of the judgment debtor and his or her spouse and dependents. (Code Civ. Proc., § 704.100(c).)

The parties should come prepared to clarify what is being levied upon (e.g., direct payments from the source or a deposit account). If a deposit account, Defendant will need to provide documentation to trace any claimed exempt amounts. Additional information is required regarding the New York Cyberlife account. If Defendant seeks to claim the necessaries of life exemption, he needs to submit a new Financial Statement completing the portion regarding his monthly expenses. Additional documentation may be required to confirm any monthly expenses claimed.

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