Monday, February 28, 2011

Kansas Legislature Looks to Increase Exempt Assets

The Kansas Legislature is looking to enhance the statutory asset protection afforded to the residents of Kansas.  The Kansas Senate is to consider a bill (SB 36) that appears to add inherited IRAs to the list of exempt assets.  It recently came out of the Committee on Judiciary to the full Senate. 

Generally, Kansas statute currently exempts the following assets from seizure and sale:

1)     a homestead to the extent of 160 acres of farming land, or of one acre within the limits of an incorporated town or city;

2)      the furnishings, equipment and supplies, including food, fuel and clothing, for the person which is in the person's present possession and is reasonably necessary at the principal residence of the person for a period of one year;

3)      jewelry, having a value not to exceed $1,000;

4)      motor vehicle, having a value not to exceed $20,000;

5)      a burial plot or crypt or any cemetery lot;

6)      the books, documents, furniture, instruments, tools, implements and equipment, the breeding stock, seed grain or growing plants stock, or the other tangible means of production regularly and reasonably necessary in carrying on the person's profession, trade, business or occupation in an aggregate value not to exceed $7,500.

K.S.A. 60-2308 also provides some protection for pension and retirement money as well as family postsecondary education savings accounts.  SB 36 appears to place the inherited IRA at the same level of protection as a personal IRA.  Please visit the Kansas Legislature for more information on SB 36.

If you have additional questions or concerns about asset protection, please contact us for a no obligation consultation.

Garrett Griffin