In re Jarboe 365 B.R. 717 (2007)

Apr 03, 2007

OUTCOME: The Court held that an inherited IRA is not exempt under state law and therefore, not exempt under the bankruptcy code.

This case involved the issue of whether an inherited IRA was exempt from creditors under state law and the bankruptcy code. After what the Court characterized as a "well argued hearing", the Court fou ... nd that an inherited IRA was not exempt under state law. The Texas legislature amended the Texas Property Code in 2011 to specifically include an inherited IRA as exempt under the Texas Property Code.