As I noted in a blog post a couple days ago – –
On June 12, 2014, the U.S. Supreme Court unanimously ruled that inherited IRAs are not exempt from creditor claims in bankruptcy. So in general, inherited IRAs do not have as much protection from creditors as many advisors thought they did. But
Last week, the U.S. Supreme Court (in the case of Clark v. Rameker) decided that an inherited IRA is not protected from your creditors in bankruptcy.
Until yesterday’s ruling, courts had been split on this issue. In the Clark case, the Bankruptcy Court ruled that an inherited IRA does not share the same
Clients frequently ask whether a so-called inherited IRA is exempt from their creditors. An inherited IRA is one you receive from say the death of a parent, rather than one to which you contribute your own funds. Unlike a traditional IRA, the inherited IRA must begin distributions to the current owner within a year of
