U.S. Supreme Court Rules Inherited IRAs Are Not Exempt From Bankruptcy

The U.S. Supreme Court recently ruled that inherited individual retirement accounts (IRAs) are not exempt assets for bankruptcy purposes, and thus can be used to satisfy the claims of bankruptcy creditors.  In Clark v. Rameker, the debtor had inherited an IRA from her deceased mother.  When the debtor and her husband filed for bankruptcy nine years later, they identified the IRA … Continue reading »

U.S. Supreme Court to Rule on Bankruptcy Protection for Inherited IRAs

The U.S. Supreme Court has granted certiorari of In re Clark, 714 F.3d 559 (7th Circuit 2013), and thus will apparently resolve a split among federal Circuit Courts of Appeals regarding whether a debtor’s inherited IRA is exempt from bankruptcy. Specifically, the issue is whether an inherited IRA qualifies as “retirement funds” under 11 U.S.C. § 522(b)(3)(C). In In re … Continue reading »