[WSBAPT] Inherited IRA subject to IRS lien?

Wed Apr 20 17:03:42 PDT 2016

Correct me if I'm wrong, but I believe the Clark v. Rameker decision
applies to individuals who have inherited an IRA and are holding it in an
inherited IRA account. Meaning if that individual attempts to file
bankruptcy, the inherited IRA is not exempt.

*Ashley Raymond, J.D., LL.M.*
Ashley Raymond, PLLC
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ashley at ashleyraymondlaw.com

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On Wed, Apr 20, 2016 at 4:55 PM, David Moe <davidmoe at maplevalleylaw.com>
wrote:

> Interesting situation—unfavorable 2015 SCOTUS decision, and favorable (I
> think) Washington Statute.  I’m not up to date on bankruptcy law.  Please
> respond to list with what further you discover.
>
>
>
> 2014 SCOTUS Case:
>
>
>
> Clark v. Rameker, 134 S. Ct. 2242 (U.S. S.Ct 2014)
>
> *View this case in Google Scholar: Clark v. Rameker, 134 S. Ct. 2242 (U.S.
> S.Ct 2014)
> <http://scholar.google.com/scholar_case?case=6536441922745620892&hl=en&as_sdt=2006&btnI=1>*
>
> *Topics*
>
> ·         *77. Exemptions: Inherited IRAs exempt under either
> 522(b)(3)(C) or 522(d)(12)?
> <https://www.legalconsumer.com/bankruptcy/bankruptcy-case.php?TopicID=77&CitationID=1519>*
>
> Form 22A Line: :: *Form 22C Line: *
>
> *Case Type: B - No, inherited IRAS are not exempt. *
>
> Supreme Court holds that Inherited IRAS are NOT exempt in bankruptcy under
> federal law. Does not address state law exemptions.
>
>
>
>
>
> WA Statute:
> RCW 6.15.020 Pension money exempt—Exceptions—Transfer of spouse's
> interest in employee benefit plan.
>
> (1) It is the policy of the state of Washington to ensure the well-being
> of its citizens by protecting retirement income to which they are or may
> become entitled. For that purpose generally and pursuant to the authority
> granted to the state of Washington under 11 U.S.C. Sec. 522(b)(2), the
> exemptions in this section relating to retirement benefits are provided.
>
> (2) Unless otherwise provided by federal law, any money received by any
> citizen of the state of Washington as a pension from the government of the
> United States, whether the same be in the actual possession of such person
> or be deposited or loaned, shall be exempt from execution, attachment,
> garnishment, or seizure by or under any legal process whatever, and when a
> debtor dies, or absconds, and leaves his or her family any money exempted
> by this subsection, the same shall be exempt to the family as provided in
> this subsection. This subsection shall not apply to child support
> collection actions issued under chapter 26.18
> <http://app.leg.wa.gov/RCW/default.aspx?cite=26.18>, 26.23, or 74.20A
> <http://app.leg.wa.gov/RCW/default.aspx?cite=74.20A> RCW, if otherwise
> permitted by federal law.
>
> (3) The right of a person to a pension, annuity, or retirement allowance
> or disability allowance, or death benefits, or any optional benefit, or any
> other right accrued or accruing to any citizen of the state of Washington
> under any employee benefit plan, and any fund created by such a plan or
> arrangement, shall be exempt from execution, attachment, garnishment, or
> seizure by or under any legal process whatever. This subsection shall not
> apply to child support collection actions issued under chapter 26.18
> <http://app.leg.wa.gov/RCW/default.aspx?cite=26.18>, 26.23, or 74.20A
> <http://app.leg.wa.gov/RCW/default.aspx?cite=74.20A> RCW if otherwise
> permitted by federal law. This subsection shall permit benefits under any
> such plan or arrangement to be payable to a spouse, former spouse, child,
> or other dependent of a participant in such plan to the extent expressly
> provided for in a qualified domestic relations order that meets the
> requirements for such orders under the plan, or, in the case of benefits
> payable under a plan described in 26 U.S.C. Sec. 403(b) or 408 of the
> internal revenue code of 1986, as amended, or section 409 of such code as
> in effect before January 1, 1984, to the extent provided in any order
> issued by a court of competent jurisdiction that provides for maintenance
> or support. This subsection does not prohibit actions against an employee
> benefit plan, or fund for valid obligations incurred by the plan or fund
> for the benefit of the plan or fund.
>
>
>
>
>
> Dave Moe
>
>
>
> David Moe, Attorney
>
> David L. Moe & Associates, P.S.
>
> Telephone:  425-432-1277
>
> Fax:  425-432-1280
>
> Address:
>
> 22128 SE 237th
>
> Maple Valley, WA 98038
>
>
>
> Email:  davidmoe at maplevalleylaw.com
>
> url:  http://www.maplevalleylaw.com
>
>
>
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>
> *From:* wsbapt-bounces at lists.wsbarppt.com [mailto:
> wsbapt-bounces at lists.wsbarppt.com] *On Behalf Of *Amy Goertz
> *Sent:* Wednesday, April 20, 2016 11:49 AM
> *To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> *Subject:* [WSBAPT] Inherited IRA subject to IRS lien?
>
>
>
> Young client’s father recently passed away. His dad had some issues with
> the IRS, including having had the IRS seize his personal checking account
> approximately a year ago. The son does not know how much is/was owed to the
> IRS or how much was taken from the account.
>
>
>
> Client and his brother are only heirs and are named beneficiaries on
> $100,000 life insurance policy and $36,000 IRA. There are no other assets
> whatsoever.
>
>
>
> Can the IRS come after these funds or are they exempt?
>
>
>
> Thanks in advance for your input.
>
>
>
> Amy
>
>
>
> *Amy J. Goertz, J.D.*
>
> *Elder Law Group PLLC*
>
> 207 W. Nora Avenue
>
> Spokane, WA  99205-4848
>
> Phone:  509.468.0551
>
> Fax:       509.465.9116
>
> Email:  amy at elgwa.com
>
> www.ElderLawGroupWA.com <http://www.elderlawgroupwa.com/>
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