If you inherited an IRA from someone, you may want to read this US Supreme Court case from last Thursday, June 12th, 2014.
- In Florida, which is considered a state with great “creditor protection” laws, sometimes referred to as asset protection laws, these issues are always a concern for estate planning clients from Palm Beach Gardens to Boca Raton.
- Check out the US Supreme Court website link below to read the entire opinion on IRA inheritances and asset protection. http://www.supremecourt.gov/opinions/13pdf/13-299_6k4c.pdf
- IRAs are considered “will substitutes” since they avoid Palm Beach probate.
- Whether a creditor can “reach” your IRA is a question that your Florida probate lawyer can answer.
- If this topic interests you, ask your Palm Beach estate planning lawyer to point you to the Florida statutes which protect your retirement accounts, IRAs and annuities.
- But remember: federal bankruptcy law is different than Florida asset protection laws.
- And remember, a Florida creditor trying to get paid provides a different PROCEDURE or a different venue than when you or a debtor files for bankruptcy. State court vs. bankruptcy court.
- Know when you get there, how to get there, and what to do if you have Florida creditor issues, especially if a creditor is making a claim in a Florida probate or a Palm Beach estate.