State-By-State Main Creditor-Debtor Exemption Chart

[Riser Adkisson LLP]

The following chart lists the four major exemptions that are a concern in asset protection planning:

(1) The Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs

(2) The Homestead Exemption

(3) The Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors

(4) The Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors

This list is not comprehensive, and is not current -- we only keep it up as time allows and other planners advise us about changes in their state's laws. The important point is that the following should only be used as a starting point for research, and certainly not as dispositive on any point.

Exemptions are complicated, and even if the statute says one thing there may be a significant court opinion that creates a large exception. Thus, exemptions must be individually researched in each and every planning situation.

FEDERAL BANKRUPTCY EXEMPTIONS (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% exclusion for ERISA qualified plans. 100% exemption for SEP-IRA and SIMPLE IRA with no cap. 100% exemption for IRAs and Roth IRAs with $1MM cap (cap does not apply to rollover IRAs). -- 11 U.S.C. § 522(d)(12)

Homestead Exemption (Note 3): $20,200 -- 11 U.S.C. § 522(d)(1)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $10,775 -- 11 U.S.C. § 522(d)(8)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): Payments from an annuity on account of illness, disability, death, age, or length of service are exempt to the extent reasonably necessary for the support of the debtor and dependents. -- 11 U.S.C. § 522(d)(10)(E)

ALABAMA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% for assets held in "qualified trust" as defined in IRC § 401(a). No Roth IRA protection. -- Ala. Code § 19-3-1.

Homestead Exemption (Note 3): $5,000 / $10,000 -- Ala. Code § 6-10-2, 27-14-29

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% for insurance on self or spouse payable to self, spouse or children. -- Ala. Code §§ 6-10-8, 27-14-29, 27-14-30

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $250/mo annuity payments in the aggregate. -- Ala. Code §§ 27-14-30, 27-14-32

ALASKA

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Alaska Stat. § 09.38.017

Homestead Exemption (Note 3): $67,500 -- Alaska Stat. § 09.38.010

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $12,500 -- Alaska Stat. § 09.38.017

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $12,500 cash value. -- Alaska Stat. § 09.38.017

ARIZONA

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Ariz. Rev. Stat. Ann. § 33-1126C

Homestead Exemption (Note 3): $150,000 -- Ariz. Rev. Stat. § 33-1101A

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% -- Ariz. Rev. Stat. § 33-1126A6

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100% -- Ariz. Rev. Stat. § 33-1126A7

ARKANSAS

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): IRA protection limited to $20,000. -- Ark. Code Ann. § 16-66-220. However, see In re Holt, 894 F.2d 1005 (8th Cir. 1990) holding that Arkansas statutory exemptions are invalid as they violate the Arkansas Constitution.

Homestead Exemption (Note 3): Unlimited for married and head-of-household residents (but once homestead attaches, not destroyed by death, divorce, or dependents' emancipation) -- Ark. Const. art. 4

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): None

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None

CALIFORNIA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): SEPs and IRAs are limited to to the extent reasonably necessary for support. Profit-sharing and non-qualified plans may be exempt. -- Cal. Civ. Proc. Code § 704.115

Homestead Exemption (Note 3): $50,000 single / $75,000 head of household / $150,000 over 65 or disabled. -- Cal. Civ. Proc. Code § 704.730

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $9,700 single / $19,400 married. -- Cal. Civ. Proc. Code § 704.100.

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): Same as life insurance if annuity contract considered "life insurance" and not "investment." -- In re Payne, 323 B.R. 723 (9th Cir. BAP 2005)

COLORADO -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Colo. Rev. Stat § 13-54-102(1)(s)

Homestead Exemption (Note 3): $45,000 -- Colo. Rev. Stat. § 38-41-201

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $50,000 -- Colo. Rev. Stat. § 13-54-102(1)(I)(I)(A)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None -- Annuity not "life insurance." In re Raymond, 132 Bankr. 53 (Bankr. D. Colo. 1991).

CONNECTICUT

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Conn. Gen. Stat. § 52-321a

Homestead Exemption (Note 3): $75,000 -- Conn. Gen. Stat. § 52-352b(t)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $4,000 -- Conn. Gen. Stat. § 52-352b(s)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None

DELAWARE -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Del Code Ann. § 10-4915

Homestead Exemption (Note 3): $50,000 -- 10 Del Code Ann. § 4914(c)(1)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): None

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $350/mo, plus amount needed for reasonable requirements of debtor and dependents. -- 18 Del Code Ann. § 6708

DISTRICT OF COLUMBIA

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- D.C. Code § 15-501(a)(9) & (10)

Homestead Exemption (Note 3): Unlimited -- D.C. Code § 15-501(a)(14)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): None (except for group life - 100%)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $200/mo for prior two months

FLORIDA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Fla. Stat. Ann. §§ 121.131, 222.21

Homestead Exemption (Note 3): Unlimited for 160 acres rural or 1/2 acre urban. -- Fla. Stat. Ann. §§ 222.01, 222.02, Fla. Const. Art. X, § 4.

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% -- Fla. Stat. Ann. §222.14

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100% for beneficiary (including owner-beneficiary). -- Fla. Stat. Ann. §222.14

GEORGIA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% for undistributed interests; Georgia Code Ann. § 18-4-22 -- Distributions exempt to the extent reasonably necessary for support; No Roth IRA protection. Georgia Code Ann. § 44-13-100(a)(2.1).

Homestead Exemption (Note 3): $10,000 single / $20,000 married -- Georgia Code Ann. § 44-13-100(a)(1). Note: S.B. 133, which would raise the exemption to $50,000 / $100,000, was reported favorably by the Senate Judiciary Committee on 3/1/07.

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $2,000 -- Georgia Code Ann. § 44-13-100(a)(9). Additionally, § 33-25-11 provides that cash values are protected from creditors of insured, without specifying whether this includes owner-insured

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): ? -- Georgia Code Ann. § 33-28-7 provides that annuity proceeds are protected from creditors of beneficiary, without specifying whether this includes owner-beneficiary

HAWAII

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% for funds deposited at least 3 years prior. -- Hawaii Rev. Stat. § 651-124

Homestead Exemption (Note 3): $20,000 / $30,000 for head of household or over 65. -- Hawaii Rev. Stat. § 651-92(a)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% -- Hawaii Rev. Stat. § 431-10-232

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100% -- Hawaii Rev. Stat. § 431-10-232

IDAHO -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Idaho Code §§ 11-604A, 55-1011

Homestead Exemption (Note 3): $100,000 -- Idaho Code § 50-1003

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): Beneficiary's right to proceeds and avails protected from insured's creditors -- Idaho Code § 41-1833

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $1,250/month -- Idaho Code § 41-1836

ILLINOIS -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100%. -- I.L.C.S. § 5/12-1006

Homestead Exemption (Note 3): $15,000 -- I.L.C.S. §§ 5/12-901; 5/12-906

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% for policy payable to dependent -- I.L.C.S. § 5/12-1001(f)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100% for annuity payable to dependent -- I.L.C.S. § 5/12-1001(f)

INDIANA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Ind. Code Ann. § 55-10-2(c)(6)

Homestead Exemption (Note 3): $15,000 -- Ind. Code Ann. § 34-55-10-2(b)(1)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% for policy payable to spouse, child, dependent or creditor. -- Ind. Code Ann. § 27-1-12-14(e)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100% for policy payable to spouse, child, dependent or creditor. -- Ind. Code Ann. § 27-2-5-1(b)

IOWA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Iowa Code Ann. § 627.6(8)(e), (f)

Homestead Exemption (Note 3): Unlimited for 40 acres rural, 1/2 acre urban. -- Iowa Code Ann. § 561.16

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% for policy payable to spouse, child, dependent or creditor, but protection for policy acquired within 2 years or increases in value within 2 years limited to $10,000. -- Iowa Code Ann. § 627.6(6)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None. -- In re Huebner, 986 F.2d 1222 (8th Cir. 1993), cert. denied, 510 U.S. 900.

KANSAS -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% for principal. -- Kan. Stat. Ann. § 60-2308. No exemption for distributions. In re Moore, 214 B.R. 628 (Bankr.D.Kan. 1997)

Homestead Exemption (Note 3): Unlimited for 160 acres rural or 1 acre urban. -- Kan. Stat. Ann. § 60-2301

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% if policy held for more than 1 year. -- Kan. Stat. Ann. § § 60-2313(a)(7), 40-414. In re Hodes, 308 B.R. 61 (10th Cir. BAP 2004)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100% if policy held for more than 1 year. -- Kan. Stat. Ann. § § 60-2313(a)(7), 40-414.

KENTUCKY

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Ky. Rev. Stat. Ann. § 427.150(2)(f)

Homestead Exemption (Note 3): $5,000 -- Ky. Rev. Stat. Ann. § 427.060

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% -- 304.14.300. In re Worthington, 28 B.R. 736 (Bankr. W.D. Ky, 1983)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $350/month -- Ky. Rev. Stat. Ann. § 304.14-330

LOUISIANA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- La. Rev. Stat. Ann. §§ 20:33(1), 13:3881(D) for funds deposited at least 1 year prior

Homestead Exemption (Note 3): $25,000 -- La. Rev. Stat. Ann. § 20:1. La. Const. Art. 12:9

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): Interest of beneficiary in proceeds and avails 100% protected. -- La. Rev. Stat Ann. § 22:647(A). Limited to $35,000 if issued within 9 months.

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100% protected. -- La. Rev. Stat Ann. § 22:647(B). Limited to $35,000 if issued within 9 months.

MAINE -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): Limited to to the extent reasonably necessary for support. -- Me. Rev. Stat. Ann. Tit. 14, § 4422(13)(E)

Homestead Exemption (Note 3): $35,000 / $70,000 if minor dependents. -- 14 Me. Rev. Stat. Ann. § 4422(1)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): Interest of beneficiary in proceeds and avails 100% protected. Interest of owner protected up to $4,000. -- 14 Me. Rev. Stat. Ann. §§ 4422(10) and (11)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $450/month -- 24-A Me. Rev. Stat. Ann. §§ 2428 and 2431

MARYLAND -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100%. -- Md. Code Ann. Cts. & Jud. Proc. § 11-504(h)(1)

Homestead Exemption (Note 3): None

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% -- Md. Code Ann. Ins. § 16-111(a)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100% -- Md. Code Ann. Ins. § 16-111(a)

MASSACHUSETTS

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): Limited to deposits equal to 7% of debtor's total income in preceding 5 years (though limitation likely not applicable to rollover IRAs). -- Mass. Gen. L. Ch. 235 § 34A; 236 § 28

Homestead Exemption (Note 3): $500,000 and $500,000 for each age 62+ or disabled person. -- Mass. Gen. L. Ch. 188 §§ 1, 1A

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): Interest of original beneficiary in proceeds 100% protected. -- Mass. Gen. L. Ch. 175 § 125. Protection exempts cash value from claims of owner's creditors if beneficiary unchanged since issuance. In re Sloss, 279 B.R. 6 (Bankr. D. Mass 2002)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None.

MICHIGAN

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Mich. Comp. Laws Ann. §§ 600.5451(1), 600.6023(1)(k). No protection for non-ERISA qualified plans.

Homestead Exemption (Note 3): $30,000 / $45,000 if 65+ or disabled. -- Mich. Comp. Laws Ann. § 600.5451(n)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% -- Mich. Comp. Laws Ann. § 500.2207

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100% -- Mich. Comp. Laws Ann. § 500.2207

MINNESOTA

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): IRA protection limited to $60,000 (adjusts for inflation). -- Minn. Rev. Stat. Ann. § 550.37(24)

Homestead Exemption (Note 3): Up to 160 acres. $750,000 rural; $300,000 urban. Minn. Rev. Stat. Ann. § 510.01.

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $7,600 -- Minn. Rev. Stat. Ann. § 550.37(23)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): Interest of beneficiary in proceeds 100% protected. -- Minn. Rev. Stat. Ann. § 61A.12

MISSISSIPPI -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Miss. Code Ann. § 85-3-1(e)

Homestead Exemption (Note 3): $75,000 for 160 acres. -- Miss. Code Ann. § 85-3-21

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): Interest of beneficiary in proceeds and avails 100% protected. -- Miss. Code Ann. § 85-3-11. Limited to $50,000 if issued within 12 months.

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None

MISSOURI -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): Limited to to the extent reasonably necessary for support. -- Mo. Ann. Stat. § 513.430.1(10)(e) and (f)

Homestead Exemption (Note 3): $15,000. -- Mo. Ann. Stat. § 513.475

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $150,000 -- Mo. Ann. Stat. § 513.430(8)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None -- In re Stover, 332 B.R. 400 (Bankr. W.D.Mo.2005)

MONTANA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Mont. Code Ann. §§ 19-2-1004, 25-13-608, 31-2-106

Homestead Exemption (Note 3): $100,000 -- Mont. Code Ann. § 70-32-104

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $4,000 -- Mont. Code Ann. § 25-13-609(4)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None

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NEBRASKA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): Limited to to the extent reasonably necessary for support. -- Neb. Rev. Stat. § 25-1563.01

Homestead Exemption (Note 3): $12,500, limited to head of household. -- Neb. Rev. Stat. §§ 40-101 to -108

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $100,000 for cash value attributable to premiums paid at least three years prior. -- Neb. Rev. Stat. § 44-371

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $100,000 for cash value attributable to premiums paid at least three years prior. -- Neb. Rev. Stat. § 44-371

NEVADA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): Limited to a present value of $500,000 -- Nev. Rev. Stat. § 21.090(1)(q).

Homestead Exemption (Note 3): $350,000 -- Nev. Rev. Stat. § 21.090(1)(l)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): All cash value attributable to premiums not exceeding $15,000/yr in the aggregate. -- Nev. Rev. Stat. § 21.090(1)(k)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $350/month -- Nev. Rev. Stat. § 687B.290

NEW HAMPSHIRE

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- N.H. Code Ann. § 511:2, XIX. Statute applies only to extensions of credit and debts arising after 1/1/1999. However, see In re Stewart, 246 B.R. 134 (Bankr. D.N.H. 2000), holding that post-1/1/99 provision preempted by 11 U.S.C.A. § 522(c).

Homestead Exemption (Note 3): $100,000 -- N.H. Code Ann. § 480:1

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): None -- In re Monahan, 171 B.R. 710 (Bankr.D.N.H.1994)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None

NEW JERSEY

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- N.J. Stat. Ann. § 25:2-1(b)

Homestead Exemption (Note 3): None

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): None

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $500/month -- N.J. Stat. Ann. § 17B-24-7

NEW MEXICO

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- N.M. Stat. Ann. §§ 42-10-1, 42-10-2

Homestead Exemption (Note 3): $60,000 -- N.M. Stat. Ann. § 42-10-9

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% -- N.M. Stat. Ann. § 42-10-3

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100% -- N.M. Stat. Ann. § 42-10-3

NEW YORK -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- N.Y. Civ. Prac. L. and R. § 5205(c)

Homestead Exemption (Note 3): $50,000 -- N.Y. Civ. Prac. L. and R. § 5206(a)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% -- N.Y. Ins. Law § 3212(b). In re Mesinger, 29 F.2d 158 (2nd Cir. 1928)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100%, however, court may order that debtor pay creditor "just and proper amount" with "due regard for the reasonable requirements" of the debtor and dependents. -- N.Y. Ins. Law § 3212(d)

NORTH CAROLINA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- N.C. Gen. Stat. § 1C-1601(a)(9)

Homestead Exemption (Note 3): $18,500 / $37,500 married -- N.C. Gen. Stat. § 1C-1601(a)(1)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% for insurance payable to spouse and/or children. -- N.C. Const. Art. X § 5; N.C. Gen. Stat. § 1C-1601(a)(6)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None

NORTH DAKOTA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): $100,000 per account / $200,000 max. unless reasonably necessary for support. -- N.D. Cent. Code § 28-22-03.1(3).

Homestead Exemption (Note 3): $80,000 -- N.D. Cent. Code §§ 47-18-01, 28-22-02(7)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $100,000 per policy / $200,000 max. for policies payable to a dependent and which have been in effect for at least one year. -- N.D. Cent. Code § 28-22-04.1(3)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $100,000 per policy / $200,000 max. for contracts payable to a dependent and which have been in effect for at least one year. -- N.D. Cent. Code § 28-22-04.1(3)

OHIO -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): Limited to to the extent reasonably necessary for support. -- Ohio Rev. Code Ann. § 2329.66(A)(10)(b) and (c). SEP-IRA not protected. In re Rayl, 299 B.R. 465.

Homestead Exemption (Note 3): $5,000 -- Ohio Rev. Code Ann. § 2329.66(A)(1)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% for policies payable to spouse, children or dependent -- Ohio Rev. Code Ann. §§ 2329.66(A)(6)(b), 3911.10

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100% for contracts payable to spouse, children or dependent. -- Ohio Rev. Code Ann. §§ 2329.66(A)(6)(b), 3911.10

OKLAHOMA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- 31 Okla. St. Ann. § 1(A)(20)

Homestead Exemption (Note 3): Unlimited for 160 acres rural, 1 acre urban. -- 31 Okla. St. Ann. § 2

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% -- 36 Okla. St. Ann. § 3631.1

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100% -- 36 Okla. St. Ann. § 3631.1

OREGON -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Ore. Rev. Stat. § 18.358

Homestead Exemption (Note 3): $39,600 -- Or. Rev. Stat § 18.395

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% so long as owner's estate is not beneficiary. -- Ore. Rev. Stat. § 743.046

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $500/mo aggregate. -- Ore. Rev. Stat. § 743.049

PENNSYLVANIA

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100%, except for amounts (1) contributed within 1 year (not including rollovers), (2) contributed in excess of $15,000 in a one-year period, or (3) deemed to be fraudulent conveyances. -- 42 Pa. C.S. §§ 8124(b)(1)(vii), (viii), (ix)

Homestead Exemption (Note 3): None

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): Income or return of $100/month -- 42 Pa. C.S. § 8124(c)(3)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $100/month -- 42 Pa. C.S. § 8124(c)(3)

PUERTO RICO

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): No statutory exemption.

Homestead Exemption (Note 3): $15,000 -- 31 P.R. Laws Ann. §§ 1851 to 1857

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% if beneficiary is spouse legal representative of insured. -- 32 P.R. Laws Ann. § 1130(9).

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $250/month -- 26 P.R. Laws Ann. § 1135

RHODE ISLAND

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- R.I. Gen. Laws § 9-26-4(11), (12). No protection for non-ERISA qualified plans.

Homestead Exemption (Note 3): $300,000 -- R.I. Gen. Laws § 9-26-4.1

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): Non-owner, non-insured beneficiary's right to proceeds and avails protected from insured's creditors. -- R.I. Gen. Laws §§ 27-4-12, 27-18-24

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None

SOUTHCAROLINA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): IRA exemption limited to to the extent reasonably necessary for support. -- S.C. Code Ann. § 15-41-30(12)

Homestead Exemption (Note 3): $50,000 per owner; $100,000 maximum (adjusted for inflation each July starting July 2007) S.C. Code Ann. § 15-41-30(1)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $4,000 -- S.C. Code Ann. § 15-41-30(8)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None

SOUTH DAKOTA

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): Limited to $250,000 -- S.D. Cod. Laws §§ 43-45-16, 17

Homestead Exemption (Note 3): Unlimited for 160 acres rural, 1 acre urban -- S.D. Cod. Laws § 43-45-3

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $20,000 -- S.D. Cod. Laws § 58-12-4

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $250/month -- S.D. Cod. Laws § 58-12-8

TENNESSEE -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): Principal 100% exempt. -- Tenn. Code Ann. § 26-2-105. Distributions 100% exempt to the extent they are on account of age, death, or length of service and debtor has no right or option to receive other than periodic payments at or after age 58

Homestead Exemption (Note 3): $7,500 unmarried / $12,500 unmarried 62+ / $20,000 married and one spouse 62+ / $25,000 married and both spouses 62+. -- Tenn. Code Ann. § 26-2-301

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% for insurance payable to spouse, child or dependents. -- Tenn. Code Ann. § 56-7-203. In re Huffines, 57 B.R. 740 (Bankr. M.D. Tenn. 1985)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100% for net amounts payable to spouse, child or dependents. -- Tenn. Code Ann. § 56-7-203.

TEXAS

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Tex. Prop. Code § 42.0021

Homestead Exemption (Note 3): Unlimited for 100 acres rural (single) / 200 acres rural (family), 1 acre urban. -- Tex. Const. Art. XVI, §§ 50, 51; Tex. Prop. Code §§ 41.001 to 002

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% -- Tex. Ins. Code § 1108.051

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): 100% -- Tex. Ins. Code § 1108.051

UTAH -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% except for amounts contributed within 1 year. -- Utah Code Ann. § 78-23-5(1)(a)(xiv)

Homestead Exemption (Note 3): $20,000 / $40,000 married -- Utah Code Ann. § 78-23-3

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% for the proceeds and avails, excluding any payments made on the contract during previous year. -- Utah Code Ann. § 78-23-5(1)(a)(xii)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None

VERMONT

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% except for amounts contributed to self-directed plans within 1 year. -- 12 Vt. Stat. Ann. § 2740(16)

Homestead Exemption (Note 3): $75,000 -- 12 Vt. Stat. Ann. § 2740(19)(D)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% -- 12. Vt. Stat. Ann. § 2740(18), 8 Vt. Stat. Ann. § 3706. In re Gabelhart, 138 B.R. 425 (Bankr. D. Vt. 1992)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $350/month -- 8 Vt. Stat. Ann. §3709

VIRGIN ISLANDS

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): No statutory exemption.

Homestead Exemption (Note 3): $30,000 -- 5 V.I. Code § 478(a)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): None

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None

VIRGINIA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): Limited to interest in one or more plans sufficient to produce annual benefit of up to $25,000 (pursuant to actuarial table in statute). -- Va. Code Ann. § 34-34

Homestead Exemption (Note 3): $5,000 -- Va. Code Ann. § 34-4

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% for policies payable to others. -- Va. Code Ann. § 38.2-3122

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None

WASHINGTON

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% -- Wash. Rev. Code § 6.15.020

Homestead Exemption (Note 3): $125,000 -- Wash. Rev. Code § 6.13.030

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% for policies payable to others. -- Wash. Rev. Code § 48.18.410

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $2,500/month -- Wash. Rev. Code § 48.18.430

WEST VIRGINIA -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): Principal 100% protected. Exemption for distributions limited to to the extent reasonably necessary for support. -- W. Va. Code § 38-10-4(j)(5). No Roth IRA protection.

Homestead Exemption (Note 3): $25,000 -- W. Va. Code § 38-10-4(a)

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $8,000 -- W. Va. Code § 38-10-4(h)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): None

WISCONSIN

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100%, except that exemption for interest of "owner-employee" (50%+ owner) or interest in "owner-dominated" plans (90% of value for benefit of one or more owner-employees) limited to the extent reasonably necessary for support. -- Wisc. Stat. Ann. § 815.18(3)

Homestead Exemption (Note 3): $40,000 -- Wisc. Stat. § 815.20

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): $150,000 (but $4000 for policies issued within 2 years). -- Wisc. Stat. § 815.18(3)(f)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $150,000 cash value (but $4000 for contracts issued within 2 years). -- Wisc. Stat. § 815.18(3)(f)

WYOMING -- Has Opted Out Of Federal Exemptions (Note 1)

Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs (Note 2): 100% exemption for qualified retirement plans. -- Wy. Stat. Ann § 1-20-110(a)(i), (ii). No statutory exemption for IRAs.

Homestead Exemption (Note 3): $20,000 -- Wy. Stat. Ann. § 1-20-101

Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors (Note 4): 100% -- Wy. Stat. Ann. § 26-15-129. In re Vigil, 74 Fed.Appx. 19 (10th Cir. 2003)

Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors (Note 5): $350/month -- Wy. Stat. Ann. § 15-5-132(a)

NOTES

Note 1: State Opt-Out -- The federal bankruptcy laws provide their own creditor exemptions. However, states may "opt out" of the federal exemptions and instead require that debtors filing for bankruptcy in a federal bankruptcy district within that state apply the state exemptions instead. Note, however, that some federal bankruptcy provisions will always trump contrary state law no matter what.

Note 2: Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs -- Assets held in an ERISA trust (not merely a "plan") are immune from creditors under the anti-alienation provisions of 29 U.S.C. § 1056(d)(1). Some states have adopted an exemption along the lines of "reasonably necessary for support". This means that the exemption will be determined by the courts on a case-by-case basis. Suffice it to say that there is a wide gulf between what the courts think is "reasonably necessary for support" and what most debtors think is "reasonably necessary for support" -- in most states, this exemption usually works out to less than $100,000 in practice. Finally, the determination of whether an IRA or retirement plan qualifies as such under state law is often very complicated where the state law looks to federal tax law.

Note 3: Homestead -- Of all the exemptions, the one for homestead is the most straightforward. However, even it is fraught with complications. Federal tax liens are not defeated by state homestead exemptions. Vacation and second homes are not protected by state homestead exemptions. Of course, residency is an issue too. The new federal bankruptcy act enacted in 2005 complicates things even more.

Note 4: Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors -- The exemption for life insurance is complicated. There are three parties involved in a life insurance policy: The insured against whose life the policy is measured; the owner who has the rights to any cash value in the policy; and the beneficiary who will receive the policy proceeds upon the death of the insured. The insured and the owner are often the same person. The good states will protect the owner's cash value against creditors of the owner. The bad states will not protect the life insurance at all, or will only protect proceeds that are paid to beneficiaries when the insured dies. A state that only protects the proceeds paid to beneficiaries does not protect the cash value of the owner, so if the owner has a creditor then the creditor can take out whatever cash value is in the life insurance policy thereby gutting it.

Note 5: Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors -- Similar to the exemption for life insurance, the exemptions for annuities do not always protect the owner's cash value in the annuity. To get the benefit of the exemption, the owner may have to annuitize the annuity and start taking payments. Where the state exemption allows annuity payments for "support", this usually means such a small amount as to be nominal.

CAVEAT: Beware the conflict of laws issues! One of the biggest problems with the state exemptions is in knowing which state's exemptions will apply. For instance, if a debtor living in a state that protects IRAs has their IRA account in a state that does not protect IRAs (or in a brokerage firm with nationwide offices), then the IRA might not be protected. Because of these conflict of laws issues, exemption planning can be very difficult and is fraught with many landmines that might allow a creditor to collect in a situation where the debtor was believed to be protected.