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Inherited IRAs now creditor proof in FL

6-1-2011 As of June 1, an Individual Retirement Account inherited by a Florida resident will not be subject to garnishment by the recipient's creditors. Florida House Bill 469, signed into law by Gov. Scott on May 31, 2011, amends Florida Statute 222.21, reversing a 2009 Florida court decision, Robertson v. Deeb.

Note:

  • The creditor-proof nature of inherited IRAs applies only to Florida residents who inherit such funds.
  • A non-Florida resident who inherits an IRA will, naturally, be subject to the laws of his/her own state of residence.
  • The legal residence of the decedent is immaterial. For example, if Mr. Smith is legally domiciled in Florida and inherits an IRA from his deceased mother who resided in New Jersey or any other state, the inherited IRA is still protected from Mr. Smith's creditors.

You can read House Bill 469 here.

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