Keywords: exemptions . retirement income . inherited IRAs .
Exemptions > IRAs > Inherited IRAs Exemptions: Inherited IRAs exempt under either 522(b)(3)(C) or 522(d)(12)?11 Cases , IssueID 77 |
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Ch 7 Means Test |
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Topic Description:The Supreme court in Clark v. Rameker, 134 S. Ct. 2242, U.S. S.Ct, 6/12/2014, held that inherited IRAs are NOT EXEMPT, at least under federal law. The court did not address state law exemptions. Lines of Cases:
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Supreme Court holds that Inherited IRAS are NOT exempt in bankruptcy under federal law. Does not address state law exemptions.
Debtor's IRA with Merrill Lynch was not exempt due to language in a standard Client Relationship Agreement which gave Merrill a Lien on all IRA funds used for Margin or borrowing. Debtor never did either, but the clause itself was enough to render the IRA not exempt, according to the judge.
Trustee claimed that Ohio debtor was limited to Ohio exemptions and could not take the IRA exemption under 522(b)(3), even though it sustained the objection to the debtor's assertion that the property was excluded from the estate via 541(c)(2) because debtor presented no arguments or evidence that the requirements of 541(c)(2) had been met. Nevertheless the exemption was allowed because the Trustee did not meet the burden of challenging the debtor's claim of exemption.
inherited IRAs are "retirement funds" as that phrase is used in section 522(d)(12). The statute does not explicitly limit "retirement funds" to retirement funds that belong to the debtor.
inherited IRAs are "retirement funds" as that phrase is used in section 522(d)(12). The statute does not explicitly limit "retirement funds" to retirement funds that belong to the debtor.
Inherited funds from debtor's mother's IRA account were not exempt under Section 522(d)(12). (Overruled by 5th Circuit, March 2012)
Supreme Court holds that Inherited IRAS are NOT exempt in bankruptcy under federal law. Does not address state law exemptions.
Debtor's IRA with Merrill Lynch was not exempt due to language in a standard Client Relationship Agreement which gave Merrill a Lien on all IRA funds used for Margin or borrowing. Debtor never did either, but the clause itself was enough to render the IRA not exempt, according to the judge.
Trustee claimed that Ohio debtor was limited to Ohio exemptions and could not take the IRA exemption under 522(b)(3), even though it sustained the objection to the debtor's assertion that the property was excluded from the estate via 541(c)(2) because debtor presented no arguments or evidence that the requirements of 541(c)(2) had been met. Nevertheless the exemption was allowed because the Trustee did not meet the burden of challenging the debtor's claim of exemption.
inherited IRAs are "retirement funds" as that phrase is used in section 522(d)(12). The statute does not explicitly limit "retirement funds" to retirement funds that belong to the debtor.
inherited IRAs are "retirement funds" as that phrase is used in section 522(d)(12). The statute does not explicitly limit "retirement funds" to retirement funds that belong to the debtor.
Inherited funds from debtor's mother's IRA account were not exempt under Section 522(d)(12). (Overruled by 5th Circuit, March 2012)
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