Key Facts About IRA Exemptions In Florida
Did you know that a recent Supreme Court ruling now says that certain IRA assets in bankruptcies are no longer exempt? When an individual files for bankruptcy, he or she may have assets that can be deemed exempt from the bankruptcy estate. One of these categories that has been in question was certain types of “retirement funds.”
Florida, though, continues to be unique when it comes to what is allowed during bankruptcy filings. Under current Florida law, inherited individual retirement accounts (IRA) are still exempt assets when it comes to assessing what is part of a bankruptcy estate. This is important to know if you are contemplating bankruptcy because it can affect how you file.
At the Miami law firm of Kingcade Garcia McMaken, we help you understand changes in the bankruptcy law, especially when court cases change what is allowed in a bankruptcy filing. We also analyze how legislative and court changes cause important differences when it comes to filing under Chapter 7 or Chapter 13 bankruptcy. Our hands-on approach keeps you involved. We also keep you informed at every stage of your case. When we take action you will know what to expect and how to move forward. To work with our experienced lawyers, contact us today and schedule a free initial consultation.
We Stay Up To Date With Legislative And Court Case Bankruptcy Changes
A recent Supreme Court decision, Clark vs. Rameker, has ruled that under 11 U. S. C. §522(b)(3)(C) funds contained in an inherited individual retirement account (IRA) do not qualify as “retirement funds” within the meaning of this bankruptcy exemption. This statute does not apply in Florida because Florida uses 522(b)(2), which allows a state to opt-out of the federal exemptions. Florida has opted-out. Fla. Stat. § 222.20. Florida’s statute specifically says that inherited IRA’s and other retirement plans are exempt. Fla. Stat. § 222.21(c).
However, if your beneficiaries live in Florida, the Florida Legislature has an IRA exemption statute which still includes inherited IRAs. Our attorneys know it is very difficult to predict where your beneficiaries will live at the time of your death and if this law will still be in effect when an estate is distributed, but we can help you assess your situation to see how this type of asset should be dealt with when you are having financial problems.
Providing In-Depth Counsel And Guidance
Bankruptcy laws are designed to protect debtors. At the end of your bankruptcy, you should be better positioned to move forward and have the tools you need to succeed. Our lawyers are here to guide you through the process so you save, discharge and reorganize assets properly.
To start getting your questions answered and working toward a better financial tomorrow, call us at 305-285-9100 or contact our bankruptcy professionals online to schedule a free consultation today. We look forward to working with you.