Monday, June 16, 2014
As I have previously discussed, In Clark v. Rameker, The Supreme Court of the United States found that under the bankruptcy code inherited IRAs are not “retirement funds.” However, this decision does not affect all inherited IRAs. The majority rule under state law includes a state bankruptcy exemption that includes inherited IRAs. Thus, if the bankruptcy proceeding is in a state that uses state rather than federal exemptions, then the inherited IRA is likely to still be protected.
See Jordan Hammer, Florida Inherited IRA Still Protected in Bankruptcy, Even in Light of U.S. Supreme Court Case Clark v. Rameker, Clark Skatoff, June 14, 2014.
Special thanks to Jeffrey Skatoff (Attorney for Clark Skatoff, PA) for bringing this article to my attention.