Estimates are that over 17 trillion dollars are currently inside retirement plans, with a very large percentage of that expected to be passed on to future generations, typically via something called a “stretch” IRA.
The challenge is the current owners of these accounts think these retirement accounts will enjoy the same asset protection, that is to say, protection from creditors, as normal IRAs.
Unfortunately there is a split of opinion amongst the various courts about the ability of an inherited IRA to be protected from creditors. Below is a list of cases for the various jurisdictions.
Alabama Bankruptcy Court
In re Navarre, 332 BR 24 – Bankruptcy Court, MD Alabama 2004
California Bankruptcy Court
In re Weilhammer, Bankr. Court, SD California 2010
In re Greenfield, 289 BR 146 – Bankruptcy Court, SD California 2003
Florida Bankruptcy Court
In Re Ard Bankr. Court, MD Florida, 2010
Florida State Court
Robertson v. Deeb, 16 So. 3d 936 – Fla: Dist. Court of Appeal, 2nd Dist. 2009
Illinois Bankruptcy Court
In re Taylor, Bankruptcy Court, CD Illinois, 2006
Idaho Bankruptcy Court
In re McClelland, Bankruptcy Court, Idaho, 2008
Indiana Bankruptcy Court
In re Klipsch, Bankruptcy Court, SD Indiana, Evansville Div. 2010
Missouri Bankruptcy Court
In re Walton, 391 BR 827 – Bankruptcy Appellate Panel, 8th Circuit 2008
North Dakota Bankruptcy Court
In re Nessa, 426 BR 312 – Bankr. Appellate Panel, 8th Circuit 2010
Ohio Bankruptcy Court
In re Kuchta, Bankruptcy Court, ND Ohio, Eastern Div. 2010
In re Reinhard, Bankruptcy Court, ND Ohio, Eastern Div. 2010
Oklahoma Bankruptcy Court
In re Sims, 241 BR 467 – Bankruptcy Court, ND Oklahoma 1999
Pennsylvania Bankruptcy Court
In re Tabor, Bankr. Court, MD Pennsylvania 2010
Texas Bankruptcy Court
In re Chilton, Bankruptcy Court, ED Texas, Sherman Div. 2010
In re Mullican, 417 BR 389 – Bankruptcy Court, ED Texas, Sherman Div. 2008
In re Jarboe, 365 BR 717 – Bankruptcy Court, SD Texas, Houston Div. 2007
Wisconsin Bankruptcy Court
In re Kirchen, 344 BR 908 – Bankruptcy Court, ED Wisconsin 2006