Loss of Creditor Rights Protection of Decedent's IRA in State Court

• Author: Seymour Goldberg
• Profession: Senior partner in the law firm of Goldberg & Goldberg, P.C., in Woodbury, New York
• Pages: 86-88

86

LOSS OF CREDITOR

RIGHTS PROTECTION

OF DECEDENT’S IRA IN

STATE COURT

Commerce Bank v. Bolander

2007 WL 1041760

(Kan. App. 2007)

(Unpublished Opinion*)5

(Selected portions of the opinion are provided below.)

In the Commerce Bank v. Bolander case, Wanda executed a trust where

she was the beneficiar y of the tr ust during her lifetime and reserved t he

right to amend or revoke the trust at any t ime. The purpose of the trust

was to provide for the educational expenses of her lineal descendants.

When Wanda died, her two IRA s were payable to her trust. The

IRAs total value at the time of her death was $212,545.80.

Commerce Bank sought a monetary judgment against her estate

and the trust . The bank claimed that the t rust property was subject to

the bank’s claim. The tr ustee argued that the bank could not attach the

trust asset s.

It is undisputed that the trust was clearly a revocable trust. The

trustee clai ms that the trust became ir revocable after Wanda’s death and

that the IR A benefits payable to the trust are exempt from any and all

claims of creditors of the decedent.

According to the court if Wanda had named specif ic beneficiaries of

the IRA , then the IRA proceeds would automatically pass at her death

* Unpublished opinions are not pr ecedential but may be used as per suasive authority.

The Kansa s Supreme Court later granted a motion to publ ish this case. The published

version was filed w ith the Clerk of the Appellate C ourts on July 30, 2010.

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