Q: I was at-fault in a car accident last year. I am a California resident.
My insurance company has advised me that the other driver is asking for more money than my policy covers. I am 70, on Social Security. I also have self-directed IRA from which I am taking monthly Required Minimum Distributions. Question: How can I protect (or minimize exposure) my IRA from lawsuit?
A: Tell your insurance to offer your policy limits to settle the case and that you have no personal assets to add to the settlement, and to communicate to the plaintiff that if an excess judgment is entered against you, you will file for bankruptcy. Your IRA should be protected from creditors in a bankruptcy proceeding, based on a 2005 Supreme Court ruling. https://www.trustetc.com/resources/education/articles/supreme-court-ruling
Confirm with a judgment collection/bankruptcy attorney. I do not practice in that area.
A: you probably need to pose this missive to an asset protection professional.
if your ins co offer the policy limits and you provide them a declaration there is no more ins and no assets they will probably accept it. if they have limits higher than yours they will go UIM
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