Asset Protection of Inherited IRAs

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