Many of you may believe that IRAs are creditor protected and you are half right. An IRA or 401(k) and 403(b)s have creditor protection. This is not the whole story though. Due to a Supreme Court decision in the last decade, creditors can now get access to Inherited IRAs. If you are going to receive an inheritance and a significant portion is from an IRA or other tax deferred type of asset, you should talk to the grantor about possibly reviewing their estate plan.
What can a review of their estate plan do to protect Inherited IRAs?
Inherited IRAs can still be protected from lawsuits, divorces, and creditors by creating what is known as a Standalone Retirement Trust. This type of trust is set up to receive tax deferred accounts in a tax friendly way that protects assets.
A good Stand-Alone Retirement Trust can:
If you are interested in finding out how a Stand-Alone Retirement Trust might be able to benefit you or your family, please call us at (951)304-3431