Also known as: exempt properties · property exemption · exempt assets
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
A debtor's holdings and possessions that by law a creditor cannot attach to satisfy a debt. The exemption prevents debtors from becoming destitute by shielding specified assets such as household items up to a statutory limit.
A debtor's holdings and possessions that by law a creditor cannot attach to satisfy a debt. The exemption prevents debtors from becoming destitute by shielding specified assets such as household items up to a statutory limit.
Select any source to read its text and confirm it supports the definition.
Personal property that a surviving spouse is automatically entitled to receive from the decedent's estate. The allowance takes priority over creditor claims and is received in addition to any elective share or testamentary disposition.
Select any source to read its text and confirm it supports the definition.
Personal property that a surviving spouse is automatically entitled to receive from the decedent's estate. The allowance takes priority over creditor claims and is received in addition to any elective share or testamentary disposition.
Each sense below has its own examples, sources, and questions.
Ezra Eastman held property in tenancy by the entirety with his spouse. The United States asserted a tax lien against the property. The Court held that the federal tax lien could attach to the husband's interest because state-law exemptions and fictions do not limit the definition of property reachable by federal tax liens.
In bankruptcy and debtor-creditor law, exempt property refers to assets an individual debtor may keep from creditors under state or federal exemption statutes. Those protections are distinct from the probate allowance awarded to a surviving spouse.
Supporting sources
Evelyn Ellison signed a written agreement before marrying Elliot Edmonds that waived her rights to homestead allowance, exempt property, and family allowance. After Elliot's death, Evelyn sought the exempt property from the estate. The court enforced the waiver because it was a signed writing and Evelyn did not prove duress or involuntariness.
Emily Ellis feloniously and intentionally killed her husband Eduardo Enriquez. She then claimed exempt property from his estate. The court held that Emily forfeited the exempt property because the killing was felonious and intentional, causing the estate to pass as if she had disclaimed her interest.
Esme Ellington intentionally killed her husband and later sought exempt property from his probate estate. The court denied the claim, applying the rule that a person who feloniously kills the decedent cannot receive exempt property or other statutory spousal benefits.
A surviving spouse may waive the right to exempt property only by a written agreement signed before or after marriage. The agreement is enforceable without consideration but is unenforceable if the spouse proves it was involuntary or the result of duress.
Supporting sources
An individual who feloniously and intentionally kills the decedent forfeits all benefits with respect to the decedent's estate, including exempt property. The estate then passes as if the killer had disclaimed the interest.
Supporting sources
Exempt property is a fixed amount of personal property automatically awarded to a surviving spouse. A homestead allowance protects the family home or its value and is a separate statutory protection that may be reduced by any preexisting constitutional homestead interest.
Supporting sources
…played in "creating and defining" property interests. By erasing the careful line between state laws that purport to disclaim or exempt property interests after the fact, which the federal tax lien does not respect, and state laws' definition of property and property rights, which the federal tax lien does respect, the Court does…