Divorce – Inherited IRA
Interesting question/scenario
A non-spouse inherited a T-IRA from his dad. Individual is now getting divorced. Does the (soon to be ex-spouse) have a claim on the inherited IRA? Do the same rules that apply to IRAs in divorce apply to inherited IRAs?
Thank you
Permalink Submitted by Alan - IRA critic on Mon, 2015-09-14 18:08
An inherited IRA is separate property, not marital property. However, in some states an increase in value of such separate property during the marriage might be subject to claim in a divorce action. If the inherited IRA ever became subject to such a claim, it could be divided by naming the receiving spouse as the beneficiary in lieu of the original spouse in a non taxable transfer.