[WSBAPT] Are inherited IRAs subject to creditors claims of decedent?

[John J. Sullivan, Esq.]

You are right. Traditional and Roth IRAs are included in the definition of
pension or retirement benefit:

 

https://app.leg.wa.gov/RCW/default.aspx?cite=6.15.020

 

The possible exception would be for past due federal income taxes of the
decedent, although the Manual guidance to IRS agents indicates they should
be left alone while the participant is alive unless used abusively .
whatever that means. 

 

Any confusion may come from the fact that the inherited IRA is no longer
protected in bankruptcy from creditors of the beneficiary. 

 

John J. Sullivan

 

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
On Behalf Of Dalynne Singleton
Sent: Monday, January 20, 2020 6:13 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Are inherited IRAs subject to creditors claims of
decedent?

 

My reading of RCW 11.18.200 indicates beneficiary of a pension (IRA) are not
subject to creditors of decedent as a non-probate asset even if there are
not enough other assets to pay the debts of decedent.  Is this correct?
Anyone briefed this or argued against an unsecured creditors claim?

 

 

 

Dalynne Singleton

 

Gourley Law Group

Snohomish Escrow

The Exchange Connection

1002 10th Street Box 13

PO Box 1091

Snohomish, WA 98291

 

360.568.5065

360.329.4079

360.568.8092  fax

dalynne at glgmail.com <mailto:dalynne at glgmail.com> 

 

Probate Paralegal:   <mailto:theresa at glgmail.com> theresa at glgmail.com

Arbitration/Personal Injury Paralegal:   <mailto:dara at glgmail.com>
dara at glgmail.com

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