In a recent Florida banckruptcy case, the court held that an IRA was not protected from creditor's claims.  As an ordinary rule, IRAs receive a higher level of asset protection than non retirement assets.  So, what is the current state of affairs?  Is your IRA protected if you get sued?

Well, the new case has opened a new way for creditors to attempt to access these asssets in litgation.  However, the court's ruling was limited to one of three IRAs which was a self directed IRA.  In this case, the court found that the defendant's violation of rules contained in the Internal Revenue Code were the source of the Plaintiff's ability to reach these assets.

HINT: In the event that you have a self directed rather than a traditional IRA, be sure to observe all of the rules related to prohibited parties, and prohibited transactions to maintain your creditor protection.

David M. Frees III, Esquire

David M. Frees Chairs the Trust, Estate, and Wealth Preservation Section of
Unruh, Turner, Burke and Frees and assists clients in developing comprehensive
estate plans and asset protection plans to protect their legacy for themselves and
for family members and loved ones.

Frees has offices in Phoenixville, Malvern, and West Chester and his firm serves clients
throughout Chester County, Delaware County, Lehigh, Berks, Bucks, and Montgomery

For more information please call 610-933-8069.

David M. Frees, III
Connect with me
Attorney, Speaker and Author
Join The Conversation
audra lazarus 11/03/2009 09:54 AM
Hi Mr. Frees, Could you please provide me with the cite for the case you reference regarding IRA's and creditors rights in Florida? Many thanks, Audra Lazarus
Post A Reply
Post A Comment