Update: Read Public Chapter No. 290 here.
SA0426 which revises a number of areas of the Wills, Trusts and Probate statutes has cleared the Tennessee Senate and is headed to the Governor’s desk. This bill updates law in the following areas:
UPDATE: The Supreme Court has ruled on this matter. Click here to read more.
Are Inherited IRAs Exempt from Bankruptcy? That is the exact question that will be argued before the United States Supreme Court. Click here to read more. Keep up with the latest on the case by clicking here.
An Inherited IRA is what your retirement account is called in the hands of your named beneficiary (e.g., your child) after you have passed away.
There is no question as to whether retirement assets are exempt in bankruptcy. The question before the Court is whether Congress intended an inherited retirement account to be included in that protection.
Continue reading Are Inherited IRAs Exempt from Bankruptcy?
You may know that the death benefit of a life insurance policy is exempt from the claims of creditors when paid to an insolvent estate where the beneficiaries are the spouse and/or children of the deceased. See T.C.A. § 56-7-201. You may also know that the cash surrender values of insurance policies and annuities are protected from creditors if the beneficiaries of the policies are the spouse and/or children of the insured or annuitant. See T.C.A. § 56-7-203.
What you probably do not know is that benefits received from health, accident or disability insurance policies are exempt from claims of creditors both during life and following the insured’s death. See T.C.A. § 26-2-110.
In a recent case, Continue reading Estate of Clendenon – Receipts from Health Insurance Exempt from Creditors in Tennessee