The United States Supreme Court, in a decision that surprised many, held that, after the death of an IRA owner, assets in an inherited IRA for a non-spouse beneficiary no longer constitute retirement funds for bankruptcy purposes; therefore, they are not protected from creditors’ claims when a non-spouse beneficiary files for bankruptcy. So if you want to be sure that your children inherit your retirement money and get to keep it even in a bankruptcy you need to be sure your trust complies with Treasury Regulations relating to naming your trust as beneficiary.
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If you would like more information, please contact Alvin H. Kriger below. Please note that this information is strictly confidential and will only be used to respond to your inquiry.