Bill > SB0112

This bill modifies the Utah Exemptions Act by updating the list of property that individuals can protect from creditors, commonly known as exemptions. Key changes include clarifying that health aids necessary for work or health are exempt, expanding exemptions for disability, illness, and unemployment benefits, and ensuring that benefits for medical, surgical, or hospital care remain exempt when used for such purposes. The bill also updates the list of exempt household appliances, including adding a microwave oven and a sewing machine, and clarifies exemptions for wearing apparel, beds, and bedding. It further refines exemptions for works of art, proceeds from bodily injury or wrongful death claims, life insurance policies, and retirement plans, including inherited retirement accounts. Additionally, the bill adjusts the exemption for unpaid earnings and specifies exemptions for firearms and money deposited in tax-advantaged education savings accounts, while also adding an exemption for federal income tax refunds related to the earned income tax credit or child tax credit. The bill also clarifies that certain exemptions, like those for retirement funds, do not cease upon death if transferred to an inherited individual retirement account, and it specifies that these exemptions do not apply to amounts contributed within a year before bankruptcy, except for direct rollovers. Finally, the bill makes technical amendments to how proceeds from sold, condemned, lost, damaged, or destroyed exempt property can be traced and protected, and it sets an effective date of May 6, 2026.

Budget and Finance

https://le.utah.gov/~2026/bills/static/SB0112.html