U.S. SUPREME COURT “INHERITED IRA” DECISION ISSUED TODAY: RETIREMENT BENEFIT TRUST PLANNING IS THE WAY TO GO
Posted June 12, 2014
Big news! The United States Supreme Court issued a ruling today opining in Clark v. Rameker that Individual Retirement Accounts (IRAs) inherited from a non-spouse (e.g., children inheriting IRAs from parents) are not protected by bankruptcy exemption as a “retirement fund.” So, it is now the law of the land that non-spousal inherited IRAs are not protected in bankruptcy.
You can protect your family by planning ahead and establishing a Retirement Benefit Trust (RBT). A RBT is a trust designed to complement traditional estate planning and to provide enhanced protection, control and flexibility when planning with an IRA or qualified retirement assets (401(k), 403(b), etc.). A properly structured RBT provides IRA beneficiaries with “trust based asset protection.”
To attain the most from your retirement accounts, please call Kelleher & Buckley, LLC at 847-382-9130 or email us at email@example.com to speak with one of our attorneys to establish a RBT for you, your family and clients.
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Pursuant to requirements related to practice before the Internal Revenue Service, any tax advice contained in this communication (including any attachments) is not intended to be used, and cannot be used, for purposes of (i) avoiding penalties imposed under the United States Internal Revenue Code or (ii) promoting, marketing or recommending to another person any tax-related matter.