78B-5-507. Exemption of proceeds from property sold, taken by condemnation, lost, damaged, or destroyed — Tracing exempt property and proceeds.
| (1) |
Terms Used In Utah Code 78B-5-507- Exempt: means protected, and "exemption" means protection from subjection to a judicial process to collect an unsecured debt. See Utah Code 78B-5-502
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- Value: means fair market value of an individual's interest in property, exclusive of valid liens. See Utah Code 78B-5-502
| (a) |
An individual who owned property described in this Subsection (1) is entitled to an exemption of proceeds that are traceable for one year after the compensation for the property is received if:
| (i) |
| (A) |
the property, or a part of the property, could have been claimed exempt under Subsection 78B-5-505(1)(a)(i) or (ii); or |
| (B) |
the property is personal property subject to a value limitation under Subsection 78B-5-506(1)(a), (b), or (c); and |
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| (ii) |
the property has been:
| (A) |
sold or taken by condemnation; or |
| (B) |
lost, damaged, or destroyed; and |
| (C) |
the owner has been compensated for the property. |
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| (b) |
The exemption of proceeds under this Subsection (1) does not entitle the individual to claim an aggregate exemption in excess of the value limitation otherwise allowable under Section 78B-5-503 or 78B-5-506. |
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| (3) |
Money or other property and proceeds exempt under this chapter are traceable under this section by application of:
| (a) |
the principle of:
| (i) |
first-in first-out; or |
| (ii) |
last-in last-out; or |
|
| (b) |
any other reasonable basis for tracing selected by the individual. |
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Amended by Chapter 425, 2020 General Session
