Estate of Davis

Upon the death of the depositor, an individual retirement account does not become an asset of the decedent’s estate subject to the claim of a judgment creditor, but passes to the named beneficiary.

Appellant Margaret Lee Wark, a judgment creditor of decedent Myrl B. Davis, appeals from the court’s order denying a special administrator’s petition for an order directing respondent James M. Davis, decedent’s son and personal representative, to transfer $176,739 in two individual retirement custodial accounts (IRAs) to decedent’s estate. The court found that the IRAs should be paid to respondent as the named beneficiary and are not assets of the probate estate. We affirm.

I

Decedent retired on January 31, 1979, and received $109,945.22 from a retirement account maintained by his employer and $68,357.49 from a deferred profit-sharing account. He made no contributions to either of these accounts. Decedent used these funds to establish two custodial IRAs; he named respondent beneficiary in the event of his death before full distribution of these accounts. In August 1979, decedent was involved in an automobile-motorcycle accident with appellant; he died on August 30, 1979, as…