QUESTION
Would retirement fund and REIT be affected if decided to file bankruptcy?
Asked on Aug 26th, 2014 on Bankruptcy - Delaware
8 ANSWERS
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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Retirement funds are normally exempt. If taking monthly income from retirement fund the income would be counted when doing the Means test.
Answered on Aug 29th, 2014 at 8:34 PM
All assets must be reported when filing bankruptcy, but there is a limited exemption for qualified retirement funds.
Answered on Aug 29th, 2014 at 8:34 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Tax qualified retirement funds (401(k), IRA, etc) are not affected by bankruptcy. REITs are not tax qualified and could be sold to pay your creditors.
Answered on Aug 29th, 2014 at 8:34 PM
A retirement account is protected in Nevada up to $500,000 in value. For a REIT to be protected, it would need to qualify as an IRS retirement vehicle.
Answered on Aug 29th, 2014 at 8:34 PM
Most retirement benefits can be wholly exempted. An interest in a REIT would have to be included unless you can use the CA "wildcard" exemption to cover it.
Answered on Aug 29th, 2014 at 8:34 PM
Tax-deferred retirement funds are usually exempt under both state and federal bankruptcy exemptions. If your REIT investment is just part of the portfolio in a tax-deferred retirement account, then it too would be exempt. If it is not contained within a retirement account, however, it would be considered an asset in a bankruptcy.
Answered on Aug 29th, 2014 at 8:34 PM
Chapter 7 Bankruptcy Attorney serving Appleton, WI
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Sisson & Kachinsky Law Offices
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Typically retirement funds can be exempt.
Answered on Aug 29th, 2014 at 8:34 PM
Retirement money no. I don't know what the other money account is.
Answered on Aug 29th, 2014 at 8:34 PM