Retirement accounts have traditionally been considered ‘exempt assets’ unavailable to creditors under the bankruptcy code in a chapter 7 bankruptcy. A recent decision by the 8th Circuit Bankruptcy Appellate Panel in In re Lerbakken puts this protection in jeopardy for spouses receiving retirement accounts in a divorce. In Lerbakken, the husband received half of his…
Wife Inherits From Husband Despite Living Separately for Over 30 Years
The Michigan Supreme Court ruled in the case of In Re Erwin Estate that a wife could inherit as her deceased husband’s “surviving spouse” after her husband’s death, even though they had separated and been living apart for over 30 years. The husband James Erwin died without a will, which means his estate was to…
Do You Need a New Tax ID Number For Your Revocable Trust?
After setting up a revocable living trust, clients sometimes run into problems with bankers, stock brokers or even accountants telling them they need a separate tax ID number for their revocable trust. Usually, this is not the case. A revocable trust uses the social security number of the person who created the trust and still…