Exempt Interests in Ohio – Asset Protection Planning

In Ohio, under section ORC 2329.66 that state lists exempt interests and rights against creditor claims. Every person who lives in Ohio can hold assets that are exempt from execution, seizure, or sale to fulfill a judgment or order.

The following table shows which assets are protected if the following occurs:

Asset 100% Protected Partially Protected Not Protected
Personal residence If money is owed for health care services provided to the person or dependent, one real or personal property that a person or dependent uses as a residence. This only delays the enforcement of money paid by the debtor until the property is sold or transferred to a person other than the surviving spouse or surviving minor children. The person’s interest that is protected cannot be greater than $125,000.
Personal residence In all other judgments and orders, one real or personal property that the person or dependent uses as a residence.
Motor vehicle The person’s interest in one motor vehicle cannot be greater than $3,225.
Money The person’s interest in cash on hand, money due and payable, money that will become due within the next 90 days, tax refunds, and money on deposit with a bank, savings and loan association, credit union, public utility, or landlord cannot be greater than $400.
Household items The person’s interest in household furnishings, household goods, clothing, appliances, books, animals, crops, musical instruments, firearms, and hunting and fishing equipment cannot be greater than $525 in any item or $10,775 in total value.
Jewelry The person’s total interest in jewelry cannot be greater than $1,350.
Profession items The person’s total interest in equipment, professional books, or tools of the person’s profession, trade, or business cannot be greater than $2,025.
Beneficiary fund The person’s interest in a beneficiary fund set apart or paid by an association[i].
Life or endowment insurance or annuities The person’s interests in contracts of life or endowment insurance or annuities[ii].
Group insurance The person’s interest in a group insurance policy[iii].
Fraternal benefits society support The person’s interest in money, benefits, charity, relief, or aid provided by a fraternal benefit society[iv].
Health and accident insurance The person’s interest in health and accident insurance benefits and in payments for losses insured under those policies[v].
Health aids The person’s medically necessary health aids.
Burial lot The person’s interest in a burial lot[vi].
Living Maintenance or rights The person’s interest in money paid for living maintenance or rights[vii].
Workers’ compensation The person’s interest in workers’ compensation[viii].
Unemployment compensation The person’s interest in unemployment compensation benefits[ix].
Cash assistance payments A person’s interest in Ohio works first program cash assistance payments[x].
Prevention, retention, and contingency program support A person’s interest in the prevention, retention, and contingency program benefits and services[xi].
Section 24 or 32 payments A person’s interest in payments under section 24 or 32 of the “Internal Revenue Code of 1986[xii].”
Retirement benefits, deferred compensation program benefits, and Ohio public safety officers death benefit fund The person’s rights or interest in a pension, benefit, annuity, retirement allowance, or total contributions. The person’s rights or interests in an account in a deferred compensation program provided by the Ohio public employees deferred compensation board, a government unit, a municipal corporation, or the person’s other growing rights or interests[xiii]. Also, the person’s rights or interests in benefits from the Ohio public safety officer’s death benefit fund. The person was convicted of or pleaded guilty to a violation[xiv], an order for withholding compensation was issued[xv], an order for forfeiture was issued[xvi], and an order was issued[xvii].
Pension and annuity payments The[xviii] person’s right to receive payment under any pension, annuity, or similar plan from illness, disability, death, age, or length of service. Except if all apply:

·         The plan was created by an insider that employed the person when the person’s rights or interests under the plan started.

·         The payment is based on age or length of service.

·         The plan is not qualified under the “Internal Revenue Code of 1986[xix].”

Retirement or education benefits The person’s rights or interests in assets held in an individual retirement account, individual retirement annuity, “Roth IRA,” account to a program under section 529 or 529A of the “Internal Revenue Code of 1986[xx],” or education retirement account that provides payments to pay for education or qualified disability expenses. To the extent that the assets, payments, or benefits are from any earnings, dividends, interests, appreciation, or gains on:

·         Contributions that were less than or equal to the limits on deductible contributions to an individual retirement account or individual retirement annuity;

·         Contributions that were less than or equal to the limits on contributions to a Roth IRA or education individual retirement account;

·         Contributions that are within the limits on rollover contributions under subsections 219, 402(c), 403(a)(4), 403(b)(8), 408(b), 408(d)(3), 408A(c)(3)(B), 408A(d)(3), and 530 (d)(5) of the “Internal Revenue Code of 1986[xxi];”

·         Contributions made into any plan, fund, or account that is subject to section 529 or 529A of the “Internal Revenue Code of 1986[xxii].”

The assets that were deposited to avoid the payment of any debt[xxiii].
Keogh or “H.R. 10” plan benefits The person’s rights or interests in assets held in any Keogh or “H.R. 10” plan that gives benefits for illness, disability, death, retirement, or age. The assets that were deposited to avoid the payment of any debt[xxiv].
Retirement or education benefits The person’s rights or interests in any assets held in any individual retirement account, individual retirement annuity, “Roth IRA,” account to a program under section 529 or 529A of the “Internal Revenue Code of 1986[xxv],”or education individual retirement account that a decedent left for the benefit of the person.
Qualified domestic relations order (QDRO) Divisions A(10)(a )to A(10)(e) apply to a qualified domestic relations order (QDRO).
Plan, program, instrument,  or device A person’s interest in any plan, program, instrument, or device, even if it failed to fulfill any criteria under the “Internal Revenue Code of 1986[xxvi],” due to an error made in good faith.
Spousal and child support The person’s right to receive spousal support, child support, an allowance, or any other payments that are needed to support the person and any dependents.
Award for damages The person’s right to receive an award of damages[xxvii].
Wrongful death payment A dependent’s right to receive a wrongful death payment.
Personal injury payment The person’s right to receive payment from personal bodily injury, not including pain and suffering or compensation for economic loss, cannot be greater than $20,200. The person who receives the payment is an inmate[xxviii], or the payment came from a civil action against a government entity or employee[xxix].
Loss of future earnings compensation The person’s right to receive compensation payment for loss of future earnings to support the person and dependents.
Personal earnings The[xxx] personal earnings of the person owed for services equal to the greater of:

·         If paid weekly, 30x the federal minimum hourly wage; if paid semimonthly, 60x the federal minimum hourly wage; or if paid monthly, 100x the federal minimum hourly wage[xxxi];

·         75% of the net earnings after deductions owed to the person.

Partnership property The person’s right in partnership property[xxxii].
Seal of notary public A seal and official register of a notary public[xxxiii].
Tuition payments The person’s interest in tuition or a payment[xxxiv].
Property Any other property that is exempted from execution, seizure, or sale by federal statutes other than the “Bankruptcy Reform Act of 1978[xxxv].”
Property The person’s total interest in any property cannot be greater than $1,075. This applies only to bankruptcy proceedings.

For more information on asset protection planning or other estate planning services, feel free to contact Elliott Stapleton.

Probate and Estate Planning Topics:

[i] Exempted by section 2329.63 of the Revised Code

[ii] Exempted by section 3911.10 of the Revised Code

[iii] Exempted by section 3917.05 of the Revised Code

[iv] Exempted by section 3921.18 of the Revised Code

[v] Exempted by section 3923.19 of the Revised Code

[vi] Exemptions under section 517.09 or 1721.07 of the Revised Code

[vii] Exempted by section 3304.19 of the Revised Code

[viii] Exempted by section 4123.67 of the Revised Code

[ix] Exempted by section 4141.32 of the Revised Code

[x] Exempted by section 5107.75 of the Revised Code

[xi] Exempted by section 5108.08 of the Revised Code

[xii] 100 Stat. 2085, 26 U.S.C 1

[xiii] Exempted by section 143.11, 145.56, 146.13, 148.09, 742.47, 3307.41, 3309.66, or 5505.22 of the Revised Code

[xiv] Under section 2921.41 of the Revised Code

[xv] Under section 2907.15 of the Revised Code

[xvi] Under division (A) or (B) of section 2929.192 of the Revised Code

 

[xviii] Except as provided in section 3119.80, 3119.81, 3121.03, and 3123.06 of the Revised Code

[xix] 100 Stat. 2085, 26 U.S.C. 1

[xx] 100 Stat. 2085, 26 U.S.C 1

[xxi] 100 Stat. 2085, 26 U.S.C.A. 1

[xxii] 100 Stat. 2085, 26 U.S.C 1

[xxiii] Except as provided in section 3119.80, 3119.81, 3121.02, 3121.03, and 3123.06 of the Revised Code

[xxiv] Except as provided in section 3119.80, 3119.81,  3121.02, 3121.03, and 3123.06 of the Revised Code

 

[xxvi] 100 Stat. 2085, 26 U.S.C. 1

[xxvii] Under section 2743.51 to 2743.72 of the Revised Code, exempted by division (D) of section 2743.66 of the Revised Code

[xxviii] Defined in section 2969.21 of the Revised Code

 

[xxx] Except as provided in section 3119.80, 3119.81, 3121.02, 3121.03, and 3123.06 of the Revised Code

[xxxi] As stated in “Fair Labor Standards Act of 1938,” 52 Stat. 1060, 29 U.S.C. 206 (a) 1

[xxxii] Exempted by section 1776.50 of the Revised Code

[xxxiii] Exempted by section 147.04 of the Revised Code

[xxxiv] Under section 3334.09 of the Revised Code and exempted by section 3334.15 of the Revised Code