This page was written, edited, reviewed & approved by Emil J. Fleysher following our comprehensive editorial guidelines. Emil J. Fleysher, the Founding Partner, has 15+ years of legal experience as a bankruptcy attorney. Our last modified date shows when this page was last reviewed.
Q: I have an IRA account that belonged to my son that I'm a beneficiary of. Unfortunately, my son passed away. And, a financial adviser advised me to transfer this IRA to my IRA account that's already in existence. Unfortunately, I may be forced to file Chapter 7 in New York in the near future. Will I be able to exempt the inherited IRA in addition to my IRA account?
A: This issue should definitely be discussed with a bankruptcy attorney in your area; as the answer may depend on your jurisdiction. Generally, your IRA accounts are fully exempt. However, inherited IRAs are a different story depending on the jurisdiction. Recently, the 5th Circuit Court of Appeals held that these IRAs are exempt under the Federal Exemptions. However, other states that require debtors to use state exemptions may not allow for an exemption of this type. In fact, New York is not in the 5th Circuit. But, I believe it does allow for use of the Federal Exemptions so you may be in the clear. Again, you should contact a local bankruptcy attorney who knows how a New York bankruptcy court will treat this asset.
If you have questions about foreclosure, loan modification, bankruptcy, or other alternatives, please feel free to call my office at 888-886-0020. Or, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.
Emil specializes in consumer bankruptcy, debt settlement, and mortgage modification, offering a holistic approach to solving mortgage and debt problems. Emil listens to clients, understands their circumstances and goals, and helps them make the right choices by presenting all options and contingencies.
He is dedicated to helping South Floridians regain their financial freedom from overwhelming debt caused by high interest credit cards, bad mortgage loans, and uninsured medical expenses.
"*" indicates required fields