Monday, July 28, 2014
As I have previously discussed, the Supreme Court has held that inherited IRAs are not protected in Bankruptcy. This has created concern in the estate planning realm since a large amount of inherited assets are no longer protected from creditors as previously thought. This decision affects an estimated $54 billion in inherited IRA funds. The decision also created uncertainty of how other similar assets will be treated. The Court left unanswered whether other types of IRAs, such as traditional and Roth IRAs, will experience the same fate as inherited IRAs.
See Cyril Tuohy, Court Decision Has Implications for Estate Planning, Insurance Net News, July 24, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.