29 Aug

Warning: Don’t Let Creditors Inherit from You

Manya Deva Natan
Manya Deva Natan is a California Bar Certified attorney with the law firm of SSS Legal & Consultancy Services located in Calabasas, CA. Her practice focuses on International Estates, Trusts and Estates, Asset Protection, Trust Administration, and more. Manya received her law degree from Stanford University, as well as a Master's in International Affairs from Columbia University. She has completed extensive course-work and training in the areas of mental, physical, and emotional health, including being a published author. She is the founder of two publishing-based companies related to health and wellness and has particular interest in the legal and financial components of health and their importance in integrated health. She has appeared multiple times on Good Morning America and is regularly contacted by national media outlets for commentary.
Manya Deva Natan

Senior woman contemplatingShocking to most people, the retirement account you leave for your spouse can be seized in a divorce, lawsuit, or bankruptcy.








3 Options Available To Surviving Spouses


When your surviving spouse inherits your IRA, he or she generally has three options:


  1. Cash out the inherited IRA and pay the associated income tax.


WARNING: the cashed-out IRA will not have creditor protection and accelerates taxation.


  1. Maintain the IRA as an inherited IRA.


WARNING: the cashed-out IRA will not have creditor protection.


  1. Roll over the inherited IRA and treat it as his or her own.


WARNING: the cashed-out IRA will not have creditor protection.


It’s frustrating to many that a stranger can swoop in and take their hard earned money; fortunately, there’s a solution and that solution is a retirement trust.


Standalone Retirement Trusts Provide Protection


A Standalone Retirement Trust (SRT) is a special type of revocable trust designed to be the beneficiary of your retirement accounts after you die. It can protect your assets from creditors.  In fact, we can include trust provisions which specifically benefit your spouse in situations such as:

  • Second marriages
  • Divorce
  • Lawsuits from car accidents, malpractice, or tenants
  • Business failure
  • Bankruptcy
  • Medicaid qualification


Want To Know More? 


The bottom line is that a properly drafted SRT is often your best option for protecting your retirement assets (and providing the bonus of tax deferred growth). Want to know more?  Contact us today to schedule a conversation. We look forward to working with you.

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