Investors in Texas who consider filing for bankruptcy may have questions about the protection of their Individual Retirement Accounts. Like the protection offered in bankruptcy against the seizure of Social Security benefits, pensions and 401(k)s, IRAs can also be safeguarded against creditors. However, an inflation-linked dollar limit will apply. It may be wise to update estate planning documents to reflect the chosen beneficiaries for the IRA, although they may not receive the same protection.
Estate planning: Can IRAs be protected in bankruptcy proceedings?
Advising an aging parent in matters of estate planning
You might be surprised how many people in Texas and throughout the United States die without having executed estate plans. Discussing the topic with your aging parents is typically a wise decision if they have turned to you for advice to get their affairs in order. Thorough estate planning is a valuable tool for protecting your parents' assets and helping them make sure their final wishes are carried out when they die.
Tips for considering long-term care planning
Considering end-of-life issues can be distressing to many Texas residents. After all, who wants to spend a great deal of time thinking about declining health, decreasing mental acuity and long\-term care planning? It is important to take the time to address these matters, however, and to do so while one's health is still at an optimal level.
Should parents discuss their resources with beneficiaries?
Many families in Texas avoid conversations about old age and death. While it is certainly not a subject on which to dwell, certain discussions are necessary. Heirs often find it difficult to locate statements, settle accounts and more because a deceased loved one's finances were not discussed. Silence about inheritances can also lead to contention between beneficiaries down the line.
