How to Protect IRAs Left to Your Beneficiairies

A recent U.S. Supreme Court decision, Clark v. Rameker, will have big implications for clients.  In the Clark case, the Supreme Court held that, while a person’s own IRA can be protected in the case of bankruptcy, the court has determined that an inherited IRA cannot, at least when it is inherited by someone other than a spouse.  While that is big news for those who have already inherited an IRA, it is a call to action for those planning to leave one behind.  Being aware of the consequences of the Court’s decision can drastically change the approach to planning in order to protect heirs from this new development. It is common for estate planning lawyers to see clients who have much of their wealth in the form of an IRA or 401(k).  During the planning process, they determine how that money should be used after their death.  It often makes up a large part of the estate they intend to leave behind.  Until recently, this was commonly done by naming individuals as beneficiaries o
http://www.norcalplanners.com/blog/advanced-estate-planning/protect-iras-left-beneficiairies/

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