Recent Changes Could Affect your IRA Planning

New changes in the law could affect your IRA planning. The U.S. Supreme Court recently held that IRAs in the hands of your children or grandchildren are no longer protected assets from their creditors. In North Carolina, an IRA is protected from creditors for the owner and his or her spouse. If you have a 401k, it is also protected under federal law–ERISA.

Those who are concerned by this change should consider creating an irrevocable trust and naming that trust as their IRA beneficiary for their children/grandchildren, leaving your IRA in an asset-protected trust to your children and grandchildren. This can be particularly helpful to those who have large IRAs and are concerned about the reach of creditors, or those who want to see their children “stretch” this inheritance to gain its maximum retirement benefits.

If you have questions about protecting your IRA, Medicaid, or Veterans benefits, consider W.G. Alexander & Associates – we offer a unique blend of asset protection, Elder Law and estate planning. You can also attend our free seminars, learn more through our website at, or call us at (919) 256-7000.

Attorney Bill Alexander discusses these issues and more every Tuesday morning on W.G. Alexander & Associates’ radio program, “Asset Protection Today,” on TalkRadio 850 WPTK (AM). Be sure to listen from 9:00-10:00 AM.