Tuesday, September 6, 2011

Inherited IRAs Exempt in Florida

While IRAs are exempt from creditor's claims, and are able to be claimed as an exempt asset in bankruptcy, it is not clear according to the applicable exemption statute in Florida as to whether an inherited IRA is also exempt. For example, should a debtor become entitled to a beneficial interest in a decedent's IRA while they are in bankruptcy, it is not clear whether the decedent's interest in the IRA could be rolled over into the debtor's IRA and become an exempt asset of the debtor. Well, during the last session of the Florida legislature, they decided to make it clear, that these funds are indeed exempt.

The relevant statute can be found at F.S.221.22(c)(2).

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