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Florida Law Update: Governor Scott Approves Extension of Creditor Protection to Inherited IRAs

On May 31 2011, House Bill 469 was approved by Governor Rick Scott. House Bill 469 codifies the Florida Legislature’s efforts to statutorily protect inherited IRAs from the claims of creditors of a debtor beneficiary under Florida state law. The statute makes clear that “any interest in any fund or account that is exempt from claims of creditors of the owner, beneficiary or participant . . . does not cease to be exempt after the owner’s death by reason of a direct transfer or eligible rollover.” Furthermore, the statute states that it is “intended to clarify existing law, is remedial in nature, and shall have retroactive application to all inherited individual retirement accounts without regard to the date an account was created.”

Clearly, Florida is a state that will protect retirement savings for the benefit and use of the individual and their family. However, the retroactive application of the law poses an issue for anyone who may have had an inherited IRA seized to satisfy a creditor’s judgement in the past. If you have had such an issue, contact Ourednik Law Offices to see how we can help you today.