Current News | Did You Know?

Did you know that retirement plan assets are exempt from creditors in Bankruptcy? This makes retirement plans an asset protection tool. A recent Bankruptcy case (Clark, D.C., Wis) settled the matter once and for all. In this case, the IRA was an asset protection tool for both the mother and her daughter. In Clark, a daughter filed Bankruptcy to get relief from creditors. One asset in her estate was an IRA she inherited from her mother’s passing. The Court ruled that IRA’s not only are exempt from levy by the Bankruptcy Trustee by the party who created the account, but also to a child who inherited it.