Taking an annuity as collateral?

Has anyone ever done this? Do you need a control agreement or an assignment- like with life insurance?

I can't put my finger on it, but I believe for some reason that you cannot take annunities as collateral. (just like IRA accounts, cannot be used as collateral on a loan)

I just can't remember why.

It really depends on the annuity - you would have to read the contract. If it is allowed, you would then proceed similar to the way you would if you were taking a whole life insurance policy.

Including reading about the assignability (sp) of the policy, also verify that the rights of the assignor and the rights of the beneficiary at time of payout. You could then contact the company for their assignment form and if you approve the form, have the owner and beneficiary sign the assignment. I wouldn't release funds until the assignment is back from acknowledgement.

Thanks for the help. I guess this is considered insurance so the UCC does not cover it?