heirs

Learn How Creditors Can Snatch Your (Inherited) IRA

Posted on 06/13/2014 by |Senior Editor, Money Team | Comments

Bulletin Today | Money & SavingsA U.S. Supreme Court ruling has just made estate planning a lot more cumbersome for some high-net-worth parents who want to leave tax-free money in a Roth IRA to a child. Retirement accounts are protected from creditors in bankruptcy cases so people don’t wind up destitute in old age. However, the court unanimously ruled on Thursday that this is not the case for those who inherit IRAs. The court decision involves a case of a woman who inherited about $450,000 in an IRA from her mother …