We often receive the question from our law firm clients, as well as estate planning professionals, about why the standalone IRA Beneficiary Trust, also known as either the IRA Inheritance Trust®, Retirement Beneficiary Trust, or Standalone Retirement Trust (“SRT”), is a better option than using the Living Trust.   There are both technical and practical reasons why a standalone trust is a preferable planning option. Our President and estate planning attorney, Philip Kavesh, who drafted the IRA Inheritance Trust® and, with the help of Keebler & Associates, LLP, received the IRS’ stamp of approval through a Private Letter Ruling back in…

Thanks to the assistance of Michelle Ward of Keebler & Associates, LLP for bringing to our attention a recent case regarding bankruptcy exemption for inherited IRAs. The 7th Circuit Court of Appeals has reversed a district court’s ruling extending bankruptcy exemption to an inherited IRA (Download Case). In Clark, the Wisconsin district court had previously reversed the bankruptcy court’s decision and allowed an inherited IRA to be exempt from the bankruptcy estate. The debtors, Mr. and Mrs. Clark, filed for chapter 7 bankruptcy in 2010. Mrs. Clark had inherited an IRA from her mother in 2001. Neither Mr. nor Mrs….