Legal Question in Wills and Trusts in California

sep ira and debt

I have cancer, my mom is the beneficiary on my sep ira. I have credit card debt & medical bills. If I die will my mom get the proceeds from my ira or will it go to pay my bills?


Asked on 12/26/07, 3:26 pm

2 Answers from Attorneys
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: sep ira and debt

Thank you for your question. IRA, SEP-IRA, and other requirements accounts are exempt from creditors, and go to the beneficiary listed on the retirement account. If your Mom is the listed beneficiary, she gets paid directly from the IRA (or, she may elect to roll over funds from the IRA), but they would not go to pay creditors.

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Answered on 12/26/07, 3:54 pm
Mitchell Roth MW Roth, Professional Law Corporation

Re: sep ira and debt

Your mom will get the proceeds if she is beneficiary. Until you death the funds are immune from creditors as long as the are in a QRT (Qualified Retirement Plan) and once you die the funds are not part of your estate for purposes of probate and not available to your creditors.

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Answered on 12/27/07, 12:52 pm


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