Many people know that retirement funds such as IRAs are protected assets if you declare bankruptcy. However, a recent U.S. Supreme Court decision has limited the extent of this protection. In a unanimous decision in the case of Clark v. Rameker the court ruled that bankruptcy protection does not apply to inherited IRAs. The ruling was based on the Court's understanding of what qualifies as retirement funds, with inherited IRAs failing to live up to the requirements. While the decision does not affect your own IRA, it could have far-reaching implications for your beneficiaries.
Read more...