|How To Protect Your and Your Parents' Assets
On April 4th at 11:30 a.m., we are having an educational event on “How to Protect Your and Your Parents’ Assets in the Event Either of You Need Long-Term Care.” I will be teaching you ways to protect your assets including Medicaid Planning, Long-Term Care Planning, and Veteran’s Benefits Planning. For veterans, I will be discussing the requirements to qualify for aid and attendance.
The event will take place at El Guapo's, located at 419 S. Elm St., Denton, TX 76205, and lunch will be provided. If you are interested in attending, please email Tammy at firstname.lastname@example.org.
If you would like to read more about long-term care planning before the event, please read my article from last month about long-term care insurance.
This month’s article is the first in a series on protecting inherited retirement plans.
Protecting Inherited Retirement Plans
Federal law protects qualified retirement plan accounts from creditors and lawsuits. State law protects IRAs. Many wrongly believe that these accounts will remain asset-protected after their owners die. This article first reviews the asset protection of qualified plans and IRAs and the required distribution rules for account owners. Next it discusses the alarming concurrence of courts that inherited IRAs are not asset protected. Finally, it explores how Retirement Plan Trusts can provide that asset protection, along with allowing the retirement accounts to be taken over the beneficiary’s lifetime. These articles will run over a few months’ time.
Asset Protection of Qualified Plans and IRAs
Asset protection for an owner's qualified plan accounts is provided under federal law, while any that exists for IRAs are provided only under state law. ERISA (the Federal Employee Retirement Income Security Act of 1974) provides protection from creditors for all qualified plan assets while they remain inside the plan. ERISA's asset protection for qualified plan distributions, however, depends upon whether the plan is a pension plan (complete protection) or a welfare benefit plan (no protection).
To learn more about protecting inherited retirement plans, visit our blog.
Thank you for the referrals!