IRA-BDA
My client is a California resident. He inherited an IRA from his father two years ago. It is an IRA-BDA.
Is this considered community property in California? Must it be split between spouse?
My client is a California resident. He inherited an IRA from his father two years ago. It is an IRA-BDA.
Is this considered community property in California? Must it be split between spouse?
Permalink Submitted by Jose Morales on Mon, 2009-05-11 17:13
I don’t have an answer for you but it certainly is an interesting situation if there are issues that need to be dealt with regarding community property law and this account. Technically/legally the funds in the account are not owned by your client. He is the beneficiary of those funds and only owns them upon request of a distribution (which is also a taxable event). If there is a divorce in the works I would also be looking into this, as it very well may not be considered part of the marital property. Hopefully someone more familiar with California community property law can enlighten us.
Permalink Submitted by Alan Spross on Mon, 2009-05-11 18:09
Any inherited asset is generally separate property in CP states. For a non spouse inherited IRA, it is easier to maintain the separate status since no contributions can be made to the account, and the BDA cannot be re registered as joint or CP.
Permalink Submitted by Susan Kendall on Mon, 2009-05-11 18:35
Thanks – Alan – do you have a code section or reference pertaining to this issue?
Permalink Submitted by Alan Spross on Mon, 2009-05-11 20:47
Sec 770 of the CA Family Code attached:
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=fam&group=00001-01…