Jun 182014
 
The Supreme Court Proclaims Inherited IRAs Are Not Protected From Creditors

On Friday June 13, the U.S. Supreme Court in the case of Clark v. Rameker, proclaimed that an inherited IRA is not an exempt asset for bankruptcy. The broader reading of this opinion is that children who receive an inherited IRA from Mom or Dad may end up losing the IRA funds to a creditor as the IRA is not creditor protected in the hands of the children. In addition, should the children need to go through bankruptcy to get a fresh start on their financial situation, the IRA will be a reachable asset for creditors. Certainly, the easiest and More…