Stand-Alone Retirement Trusts
Part 1 – An Introduction
In a recent Supreme Court case called Clark v. Rameker, the Court held – unanimously by the way – that an inherited IRA cannot be shielded from creditors or bankruptcy. The case involved a woman that inherited her mom’s IRA, and years later declared bankruptcy. Without a crystal ball, that would have been impossible to predict in this case, but it happened. With a little structuring of this type of asset, we can avoid losing it all in a bad situation such as this. The device used in this type of estate planning is called a Standalone Retirement Trust, or SRT for short.
Another great benefit to using a Stand Alone Retirement Trust is that we can maximize the “stretch”. The Stretch is the effect of leaving as much of this type of asset alone inside the account to continue to grow over time. The effect is huge.
I will address other aspects and benefits of the Standalone Retirement Trust in future blogs, so please check my website for additional information.
Thanks for reading! If you like, please feel free to call me today and we can Get Planning!
See lots of estate planning information on my website at: www.myestate-plan.com
Just like my website, nothing in this blog is intended as legal advice. If you need legal advice, contact an attorney licensed to practice in your jurisdiction. I am licensed to practice law in California. Further, please remember that I speak in generalities in my blog (and on my website). There are so many different factors that can contribute and completely change the outcome that it would not be practical to discuss all of them here. This is why I speak in generalities. Thanks again for reading.