Many families assume that an inherited IRA is shielded from creditors the same way a traditional retirement account is for its original owner. In 2014, however, the U.S. Supreme Court ruled in Clark v. Rameker that inherited IRAs are not considered “retirement funds” for bankruptcy purposes, meaning they can be reached by...
Category: Creditors
Wisconsin Probate FAQ’s: How a Creditor Can Disrupt Probate
When someone dies, their will typically names a Personal Representative who must open the estate and provide public notice of the death. This is often done by publishing in a local newspaper, so potential creditors can come forward. The Personal Representative must also make reasonable efforts to identify known debts and notify...
Collecting Debts on Behalf of Your Deceased Loved One
People often engage in transactions that result in money being owed to them, such as loaning money to a friend or business partner or renting a house to a tenant. But what happens if someone passes away before they receive the money owed to them? Can someone else collect these debts? If...
Beneficiary-Controlled Trusts in Estate Planning
Would you like to provide your children or loved ones with an inheritance but protect them from the risks that may accompany a large windfall? If so, you can create a beneficiary-controlled trust in which the person you name as the trust’s primary beneficiary has rights, benefits, and control over the property...
Discretionary Trusts – How to Protect Your Beneficiaries from Bad Decisions and Outside Influences
Although leaving your hard-earned assets outright to your children, grandchildren, or other beneficiaries after you die may seem like the easiest and most desired form of distribution, this scheme will make their inheritance easy prey for creditors, predators, and divorcing spouses. Instead, consider using discretionary trusts for the benefit of each of your...
Isn’t There Already a Law That Leaves Everything To My Wife and Kids?
Many people think that if they die while they are married, everything they own automatically goes to their spouse or children. They’re actually thinking of state rules that apply if someone dies without leaving a will. In legal jargon, this is referred to as “intestate.” In that case, the specifics will vary depending...