Recent changes to California law have made it possible, in some cases, to protect inherited IRA funds during a bankruptcy. Now, attorneys at Crest Law Firm are helping clients to utilize this change in the law to protect their money in the event of a bankruptcy filing.
In the past, the Supreme Court made it clear that IRA funds inherited from a spouse or parent were not exempt from bankruptcy proceedings, although personal IRA funds were protected.
Now, however, California, which has opted out of the federal bankruptcy exemption scheme, may be able to apply its own terms to inherited IRAs, allowing California judges to allow those funds to be exempt during a bankruptcy. The Orange County lawyers at Crest Law Firm are ready to help those who may be facing bankruptcy but are unsure about what will happen with inherited IRA funds.
An IRA or Individual Retirement Account is a good way to save for retirement expenses. Traditionally, federal law has held that personal IRAs into which the debtor has placed funds in anticipation of retirement is exempt from creditors in a bankruptcy because this may be the only assets the debtor has available for retirement. However, the federal courts do not give the same consideration to inherited IRA funds which were not meant for the beneficiary’s retirement. Those funds have been subject to creditor disbursement in a bankruptcy.
However, the new California ruling may allow debtors to keep inherited IRA funds, especially if the beneficiary is a spouse without any other means of support. In order to learn more about this new ruling and how it may affect a particular bankruptcy, it is important to talk to a knowledgeable bankruptcy attorney like those at Crest Law Firm.
Clients who want to find a professional business attorney as seen at http://www.crestlawfirm.com/business/ , immigration attorney as seen at http://www.crestlawfirm.com/immigration/ or bankruptcy attorney as seen at http://www.crestlawfirm.com/bankruptcy/ can find the help they need at Crest Law Firm. The firm also offers quality personal injury attorney and litigation attorney services.
For more information, see http://newswire.net/newsroom/pr/00084630-immigration-bankruptcy-business-attorney.html
About Crest Law Firm:
Crest Law Firm is an Orange County legal group offering help with immigration, bankruptcy, business and personal injury law issues.
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Crest Law Firm
9891 Irvine Center Drive Suite # 130
Irvine, CA 92618