SB 112 — Utah Exemptions Act Modifications

SB0112S02Enrolled comparedCopy withS.B. SB0112 {Omitted text} shows text that was in SB0112 but was omitted in SB0112S02 inserted text shows text that was not in SB0112 but was inserted into SB0112S02 DISCLAIMER:

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Utah Exemptions Act Modifications GENERAL SESSION STATE OF UTAH Chief Sponsor:

3Nelson LONGT. TITLE General Description:

Abbott 3 LONG TITLE General Description:

▸ {allowsallows an individual subject to collection of an unsecured debt to exempt:}exempt ●any {anfederal unusedincome amounttax ofrefund theattributed homesteadto exemptionan inearned certainincome circumstances;tax credit or child tax credit;

and} ● allows an individual subject to collection of an unsecured debt to exempt any federal {or state } income tax refund attributed to an earned income tax credit or child tax credit;

S None B Utah Code Sections Affected:

0 AMENDS:

SB011278B-5-505, compared with SB0112S02 78B-5-505 , as last amended by Laws of Utah 2025, First Special Session, Chapter 11 78B-5-50778B-5-507, , as last amended by Laws of Utah 2020, Chapter 425 Be it enacted by the Legislature of the state of Utah:

78B-5-505.78B-5-505 .

(1)(1)[(a)] [(a)] An individual is entitled to exemption of the following property:

[(A)]S.B. (i) disability;

112 Enrolled Copy [(A)] (i) disability;

[(viii)] (h)(h)[(A) [(A) one:] [(I)] (A){(i)}(i) one clothes washer[ and] ;

(B){(ii)}(ii) one clothes dryer;

[(II)] (C){(iii)}(iii) one refrigerator;

[(III)] (D){(iv)}(iv) one freezer;

[(IV)] (E){(v)}(v) one stove;

[(V)] (F){(vi)}(vi) one microwave oven;[ and] - 2 - SB0112 compared with SB0112S02 [(VI)] (G){(vii)}(vii) one sewing machine;

[(B)] (H){(viii)}(viii) all carpets in use;

[(C)] (I){(ix)}(ix) provisions sufficient for 12 months actually provided for individual or family use;

[(D)] (J){(x)}(x) all wearing apparel of [every] each individual and dependent, not including jewelry or furs;

and [(E)] (K){(xi)}(xi) all beds and bedding for [every] each individual [or] and dependent;

[(xi)]- (k)2 the- proceedsEnrolled orCopy benefitsS.B. of any life insurance contracts or policies paid or payable to the debtor or any trust of which the debtor is a beneficiary upon the death of the spouse or children of the debtor, provided that the contract or policy has been owned by the debtor for a continuous unexpired period of one year;

112 [(xi)] (k) the proceeds or benefits of any life insurance contracts or policies paid or payable to the debtor or any trust of which the debtor is a beneficiary upon the death of the spouse or children of the debtor, provided that the contract or policy has been owned by the debtor for a continuous unexpired period of one year;

- 3 - SB0112 compared with SB0112S02 [(xv)] (o) the interest of or any money or other assets payable to an alternate payee under a qualified domestic relations order as those terms are defined in Section 414(p), Internal Revenue Code;

[(xvi)] (p) unpaid earnings of the household of the filing individual due as of the date of the filing of a bankruptcy petition in the amount of 1/24 of the Utah [State] state annual median family income for the household size of the filing individual as determined by the Utah [State Annual Median Family Income] state annual median family income reported by the United States Census Bureau and as adjusted based upon the Consumer Price Index for All Urban Consumers for an individual whose unpaid earnings are paid more often than once a month or, if unpaid earnings are not paid more often than once a month, then in the amount of 1/12 of the Utah [State] state annual median family income for the household size of the individual as determined by the Utah [State Annual Median Family Income] state annual median family income reported- by3 the- UnitedS.B. States Census Bureau and as adjusted based upon the Consumer Price Index for All Urban Consumers;

112 Enrolled Copy reported by the United States Census Bureau and as adjusted based upon the Consumer Price Index for All Urban Consumers;

and [(C)] (iii) one shoulder arm and ammunition for the shoulder arm not exceeding 1,000 rounds;[ and] [(xviii)] (r) money, not exceeding $200,000, in the aggregate, that an individual deposits, more than 18 months before the day on which the individual files a petition for bankruptcy or an action is filed by a creditor against the individual, as applicable, in all tax-advantaged accounts for saving for higher education costs on behalf of a particular individual that meets the requirements of Section 529, Internal Revenue Code[.] ;and; {(xix) {up to $10,000 of any unused portion of the homestead exemption described in Section 78B-5-503, which the individual may apply to the individual's aggregate interest in any real or personal property;

and}and }(s) (xx){(s)} the full amount of any federal {or state } income tax refund attributed to an earned income tax credit or any child tax credit, whether as a refundable tax credit or as a nonrefundable reduction in tax.

[(b)[(b)(i) - 4 - SB0112 compared with SB0112S02 (i) Any money, asset, or other interest in a fund or account that is exempt from a claim of a creditor of the owner, beneficiary, or participant under Subsection (1)(a)(xiv) does not cease to be exempt after the owner's, participant's, or beneficiary's death by reason of a direct transfer or eligible rollover to an inherited individual retirement account as defined in Section 408(d)(3), Internal Revenue Code.] [(ii) Subsections (1)(a)(xiv) and (1)(b)(i) apply to all inherited individual retirement accounts without regard to the date on which the account was created.] [(c)[(c)(i) (i) The exemption granted by Subsection (1)(a)(xiv) does not apply to:] [(A) an alternate payee under a qualified domestic relations order, as those terms are defined in Section 414(p), Internal Revenue Code;

or] [(B) amounts contributed or benefits accrued by or on behalf of a debtor within one year before the debtor files for bankruptcy, except amounts directly rolled over from other funds that are exempt from attachment under this section.] [(ii) The exemptions in Subsections (1)(a)(xi), (xii), and (xiii) do not apply to the secured creditor's interest in proceeds and avails of any matured or unmatured life insurance contract assigned or pledged as collateral for repayment of a loan or other- legal4 obligation.]- (2)Enrolled (a)Copy AnyS.B. money, asset, or other interest in a fund or account that is exempt from a claim of a creditor of the owner, beneficiary, or participant under Subsection (1)(n) does not cease to be exempt after the owner's, participant's, or beneficiary's death by reason of a direct transfer or eligible rollover to an inherited individual retirement account as defined in Section 408(d)(3), Internal Revenue Code.

112 other legal obligation.] (2)(a) Any money, asset, or other interest in a fund or account that is exempt from a claim of a creditor of the owner, beneficiary, or participant under Subsection (1)(n) does not cease to be exempt after the owner's, participant's, or beneficiary's death by reason of a direct transfer or eligible rollover to an inherited individual retirement account as defined in Section 408(d)(3), Internal Revenue Code.