Watershed YearWatershed Year
How the U.S. Supreme Court profoundly reshaped the retirement planning landscape, and other game changers
When it comes to retirement plan accounts, planners must gear up to incorporate new rules and new opportunities that surfaced in 2014.
No Bankruptcy Exclusion
Estate planners will have to re-think how retirement death benefits will be protected from creditors in the wake of Clark v. Rameker.1 In Clark, the U.S. Supreme Court held that the bankruptcy estate of Heidi Heffron-Clark couldn’t exclude the individual retirement account she inherited from her mother.
The court said Heidi’s inherited IRA didn’t constitute funds held for her retirement because: (1) it didn’t (and couldn’t) hold funds Heidi contributed, (2) it won’t be subject to the 10 percent tax on pre-age 59½ distributions, and (3) required minimum distributions (RMDs) forced ...
Unlock All Access Premium Subscription
Get Trusts & Estates articles, digital editions, and an optional print subscription. Choose your subscription now and dive into expert insights today!
Already Subscribed?
