host posted on May 21, 2011 10:46
Tara Twomey of NCBRC’s Amicus Project has filed an amicus brief for NACBA in the case of Mullen v. Hamlin (In re Hamlin), No. 11-1083, (B.A.P. 9th Cir.) addressing the issue of whether an inherited IRA is exempt in bankruptcy. Amicus argues that pursuant to sections 522(b)(3)(C) and (b)(4)(C), a debtor may exempt inherited IRAs so long as the funds from the IRA are in an account that enjoys tax exempt status under specified provisions of the Internal Revenue Code. The brief notes that the Eighth Circuit Bankruptcy Appellant Panel as well as nearly every district and bankruptcy court to address the issue, have found as the bankruptcy court in this case found: that inherited IRAs that otherwise meet the requirements set forth in sections 522(b)(3)(C) and 522(b)(4)(C) are exempt from the bankruptcy estate.HamlinFinal.pdf