Shielding Inherited IRAs from Creditors

In a recent WSJ Wealth Advisor article, Arden Dale discusses techniques used for protection of inherited IRAs.  Since several state courts have ruled that inherited IRAs don’t qualify as “retirement funds” and federal law doesn’t clearly define “retirement funds”, inherited IRAs may not be protected from creditors.  The article discusses some techniques available to provide greater certainty, until the Supreme Court or Congress clarify the matter.  The article points out that “retirement trusts”, which are used to hold IRAs in trusts after the death of the owner, offer the type of protection that may now be lacking under state law.  Stay tuned for more.