Asset Protection State-by-State

State¹ (opt out of federal exemptions in bankruptcy)	Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs	Homestead Exemption	Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors	Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors
FED¹ BKRP	100% exclusion for ERISA qualified plans. 100% exemption for SEP-IRA and SIMPLE IRA with no cap. 100% exemption for IRAs and Roth IRAs with $1MM cap (cap does not apply to rollover IRAs). 11 U.S.C. § 522(d)(12)	$20,200 11 U.S.C. § 522(d)(1)	$10,775 11 U.S.C. § 522(d)(8)	Payments from an annuity on account of illness, disability, death, age, or length of service are exempt to the extent reasonably necessary for the support of the debtor and dependents. 11 U.S.C. § 522(d)(10)(E)
AL opt out	100% for assets held in "qualified trust" as defined in IRC § 401(a). No Roth IRA protection. Ala. Code § 19-3-1.	$5,000 / $10,000 Ala. Code § 6-10-2, 27-14-29	100% for insurance on self or spouse payable to self, spouse or children. Ala. Code §§ 6-10-8, 27-14-29, 27-14-30	$250/mo annuity payments in the aggregate. Ala. Code §§ 27-14-30, 27-14-32
AK	100% Alaska Stat. § 09.38.017	$67,500 Alaska Stat. § 09.38.010	$12,500 Alaska Stat. § 09.38.017	$12,500 cash value. Alaska Stat. § 09.38.017
AZ	100% Ariz. Rev. Stat. Ann. § 33-1126C	$150,000 Ariz. Rev. Stat. § 33-1101A	100% Ariz. Rev. Stat. § 33-1126A6	100% Ariz. Rev. Stat. § 33-1126A7
AR	IRA protection limited to $20,000. Ark. Code Ann. § 16-66-220. However, see In re Holt, 894 F.2d 1005 (8th Cir. 1990) holding that Arkansas statutory exemptions are invalid as they violate the Arkansas Constitution.	Unlimited for married and head-of-household residents (but once homestead attaches, not destroyed by death, divorce, or dependents' emancipation) Ark. Const. art. 4	None	None
CA opt out	Limited to to the extent reasonably necessary for support. Cal. Civ. Proc. Code § 704.115	$50,000 single / $75,000 head of household / $150,000 over 65 or disabled. Cal. Civ. Proc. Code § 704.730	$9,700 single / $19,400 married. Cal. Civ. Proc. Code § 704.100.	Same as life insurance if annuity contract considered "life insurance" and not "investment." In re Payne, 323 B.R. 723 (9th Cir. BAP 2005)
CO opt out	100% Colo. Rev. Stat § 13-54-102(1)(s)	$45,000 Colo. Rev. Stat. § 38-41-201	$50,000 Colo. Rev. Stat. § 13-54-102(1)(I)(I)(A)	None Annuity not "life insurance." In re Raymond, 132 Bankr. 53 (Bankr. D. Colo. 1991).
CT	100% Conn. Gen. Stat. § 52-321a	$75,000 Conn. Gen. Stat. § 52-352b(t)	$4,000 Conn. Gen. Stat. § 52-352b(s)	None
DE opt out	100% Del Code Ann. § 10-4915	$50,000 10 Del Code Ann. § 4914(c)(1)	None	$350/mo, plus amount needed for reasonable requirements of debtor and dependents. 18 Del Code Ann. § 6708
DC	100% D.C. Code § 15-501(a)(9) & (10)	Unlimited D.C. Code § 15-501(a)(14)	None (except for group life - 100%)	$200/mo for prior two months
FL opt out	100% Fla. Stat. Ann. §§ 121.131, 222.21	Unlimited for 160 acres rural or 1/2 acre urban. Fla. Stat. Ann. §§ 222.01, 222.02, Fla. Const. Art. X, § 4.	100% Fla. Stat. Ann. §222.14	100% for beneficiary (including owner-beneficiary). Fla. Stat. Ann. §222.14
GA opt out	100% for undistributed interests; Distributions exempt to the extent reasonably necessary for support; No Roth IRA protection. Georgia Code Ann. § 44-13-100(a)(2.1).	$10,000 single / $20,000 married Georgia Code Ann. § 44-13-100(a)(1). Note: S.B. 133, which would raise the exemption to $50,000 / $100,000, was reported favorably by the Senate Judiciary Committee on 3/1/07.	$2,000 Georgia Code Ann. § 44-13-100(a)(9). Additionally, § 33-25-11 provides that cash values are protected from creditors of insured, without specifying whether this includes owner-insured	? Georgia Code Ann. § 33-28-7 provides that annuity proceeds are protected from creditors of beneficiary, without specifying whether this includes owner-beneficiary
HI	100% for funds deposited at least 3 years prior. Hawaii Rev. Stat. § 651-124	$20,000 / $30,000 for head of household or over 65. Hawaii Rev. Stat. § 651-92(a)	100% Hawaii Rev. Stat. § 431-10-232	100% Hawaii Rev. Stat. § 431-10-232
ID opt out	100% Idaho Code §§ 11-604A, 55-1011	$100,000 Idaho Code § 50-1003	Beneficiary's right to proceeds and avails protected from insured's creditors Idaho Code § 41-1833	$1,250/month Idaho Code § 41-1836
IL opt out	100%. I.L.C.S. § 5/12-1006	$15,000 I.L.C.S. §§ 5/12-901; 5/12-906	100% for policy payable to dependent I.L.C.S. § 5/12-1001(f)	100% for annuity payable to dependent I.L.C.S. § 5/12-1001(f)
IN opt out	100% Ind. Code Ann. § 55-10-2(c)(6)	$15,000 Ind. Code Ann. § 34-55-10-2(b)(1)	100% for policy payable to spouse, child, dependent or creditor. Ind. Code Ann. § 27-1-12-14(e)	100% for policy payable to spouse, child, dependent or creditor. Ind. Code Ann. § 27-2-5-1(b)
IA opt out	100% Iowa Code Ann. § 627.6(8)(e), (f)	Unlimited for 40 acres rural, 1/2 acre urban. Iowa Code Ann. § 561.16	100% for policy payable to spouse, child, dependent or creditor, but protection for policy acquired within 2 years or increases in value within 2 years limited to $10,000. Iowa Code Ann. § 627.6(6)	None. In re Huebner, 986 F.2d 1222 (8th Cir. 1993), cert. denied, 510 U.S. 900.
KS opt out	100% for principal. Kan. Stat. Ann. § 60-2308. No exemption for distributions. In re Moore, 214 B.R. 628 (Bankr.D.Kan. 1997)	Unlimited for 160 acres rural or 1 acre urban. Kan. Stat. Ann. § 60-2301	100% if policy held for more than 1 year. Kan. Stat. Ann. § § 60-2313(a)(7), 40-414. In re Hodes, 308 B.R. 61 (10th Cir. BAP 2004)	100% if policy held for more than 1 year. Kan. Stat. Ann. § § 60-2313(a)(7), 40-414.
KY	100% Ky. Rev. Stat. Ann. § 427.150(2)(f)	$5,000 Ky. Rev. Stat. Ann. § 427.060	100% 304.14.300. In re Worthington, 28 B.R. 736 (Bankr. W.D. Ky, 1983)	$350/month Ky. Rev. Stat. Ann. § 304.14-330
LA opt out	100% La. Rev. Stat. Ann. §§ 20:33(1), 13:3881(D) for funds deposited at least 1 year prior	$25,000 La. Rev. Stat. Ann. § 20:1. La. Const. Art. 12:9	Interest of beneficiary in proceeds and avails 100% protected. La. Rev. Stat Ann. § 22:647(A). Limited to $35,000 if issued within 9 months.	100% protected. La. Rev. Stat Ann. § 22:647(B). Limited to $35,000 if issued within 9 months.
ME opt out	Limited to to the extent reasonably necessary for support. Me. Rev. Stat. Ann. Tit. 14, § 4422(13)(E)	$35,000 / $70,000 if minor dependents. 14 Me. Rev. Stat. Ann. § 4422(1)	Interest of beneficiary in proceeds and avails 100% protected. Interest of owner protected up to $4,000. 14 Me. Rev. Stat. Ann. §§ 4422(10) and (11)	$450/month 24-A Me. Rev. Stat. Ann. §§ 2428 and 2431
MD opt out	100%. Md. Code Ann. Cts. & Jud. Proc. § 11-504(h)(1)	None	100% Md. Code Ann. Ins. § 16-111(a)	100% Md. Code Ann. Ins. § 16-111(a)
MA	Limited to deposits equal to 7% of debtor's total income in preceding 5 years (though limitation likely not applicable to rollover IRAs). Mass. Gen. L. Ch. 235 § 34A; 236 § 28	$500,000 and $500,000 for each age 62+ or disabled person. Mass. Gen. L. Ch. 188 §§ 1, 1A	Interest of original beneficiary in proceeds 100% protected. Mass. Gen. L. Ch. 175 § 125. Protection exempts cash value from claims of owner's creditors if beneficiary unchanged since issuance. In re Sloss, 279 B.R. 6 (Bankr. D. Mass 2002)	None.
MI	100% Mich. Comp. Laws Ann. §§ 600.5451(1), 600.6023(1)(k). No protection for non-ERISA qualified plans.	$30,000 / $45,000 if 65+ or disabled. Mich. Comp. Laws Ann. § 600.5451(n)	100% Mich. Comp. Laws Ann. § 500.2207	100% Mich. Comp. Laws Ann. § 500.2207
MN	IRA protection limited to $60,000 (adjusts for inflation). Minn. Rev. Stat. Ann. § 550.37(24)	Up to 160 acres. $750,000 rural; $300,000 urban. Minn. Rev. Stat. Ann. § 510.01.	$7,600 Minn. Rev. Stat. Ann. § 550.37(23)	Interest of beneficiary in proceeds 100% protected. Minn. Rev. Stat. Ann. § 61A.12
MS opt out	100% Miss. Code Ann. § 85-3-1(e)	$75,000 for 160 acres. Miss. Code Ann. § 85-3-21	Interest of beneficiary in proceeds and avails 100% protected. Miss. Code Ann. § 85-3-11. Limited to $50,000 if issued within 12 months.	None
MO opt out	Limited to to the extent reasonably necessary for support. Mo. Ann. Stat. § 513.430.1(10)(e) and (f)	$15,000. Mo. Ann. Stat. § 513.475	$150,000 Mo. Ann. Stat. § 513.430(8)	None In re Stover, 332 B.R. 400 (Bankr. W.D.Mo.2005)
MT opt out	100% Mont. Code Ann. §§ 19-2-1004, 25-13-608, 31-2-106	$100,000 Mont. Code Ann. § 70-32-104	$4,000 Mont. Code Ann. § 25-13-609(4)	None
NE opt out	Limited to to the extent reasonably necessary for support. Neb. Rev. Stat. § 25-1563.01	$12,500, limited to head of household. Neb. Rev. Stat. §§ 40-101 to -108	$100,000 for cash value attributable to premiums paid at least three years prior. Neb. Rev. Stat. § 44-371	$100,000 for cash value attributable to premiums paid at least three years prior. Neb. Rev. Stat. § 44-371
NV opt out	Limited to a present value of $500,000 Nev. Rev. Stat. § 21.090(1)(q).	$350,000 Nev. Rev. Stat. § 21.090(1)(l)	All cash value attributable to premiums not exceeding $15,000/yr in the aggregate. Nev. Rev. Stat. § 21.090(1)(k)	$350/month Nev. Rev. Stat. § 687B.290
NH	100% N.H. Code Ann. § 511:2, XIX. Statute applies only to extensions of credit and debts arising after 1/1/1999. However, see In re Stewart, 246 B.R. 134 (Bankr. D.N.H. 2000), holding that post-1/1/99 provision preempted by 11 U.S.C.A. § 522(c).	$100,000 N.H. Code Ann. § 480:1	None In re Monahan, 171 B.R. 710 (Bankr.D.N.H.1994)	None
NJ	100% N.J. Stat. Ann. § 25:2-1(b)	None	None	$500/month N.J. Stat. Ann. § 17B-24-7
NM	100% N.M. Stat. Ann. §§ 42-10-1, 42-10-2	$60,000 N.M. Stat. Ann. § 42-10-9	100% N.M. Stat. Ann. § 42-10-3	100% N.M. Stat. Ann. § 42-10-3
NY opt out	100% N.Y. Civ. Prac. L. and R. § 5205(c)	$50,000 N.Y. Civ. Prac. L. and R. § 5206(a)	100% N.Y. Ins. Law § 3212(b). In re Mesinger, 29 F.2d 158 (2nd Cir. 1928)	100%, however, court may order that debtor pay creditor "just and proper amount" with "due regard for the reasonable requirements" of the debtor and dependents. N.Y. Ins. Law § 3212(d)
NC opt out	100% N.C. Gen. Stat. § 1C-1601(a)(9)	$18,500 / $37,500 married N.C. Gen. Stat. § 1C-1601(a)(1)	100% for insurance payable to spouse and/or children. N.C. Const. Art. X § 5; N.C. Gen. Stat. § 1C-1601(a)(6)	None
ND opt out	$100,000 per account / $200,000 max. unless reasonably necessary for support. N.D. Cent. Code § 28-22-03.1(3).	$80,000 N.D. Cent. Code §§ 47-18-01, 28-22-02(7)	$100,000 per policy / $200,000 max. for policies payable to a dependent and which have been in effect for at least one year. N.D. Cent. Code § 28-22-04.1(3)	$100,000 per policy / $200,000 max. for contracts payable to a dependent and which have been in effect for at least one year. N.D. Cent. Code § 28-22-04.1(3)
OH opt out	Limited to to the extent reasonably necessary for support. Ohio Rev. Code Ann. § 2329.66(A)(10)(b) and (c). SEP-IRA not protected. In re Rayl, 299 B.R. 465.	$5,000 Ohio Rev. Code Ann. § 2329.66(A)(1)	100% for policies payable to spouse, children or dependent Ohio Rev. Code Ann. §§ 2329.66(A)(6)(b), 3911.10	100% for contracts payable to spouse, children or dependent. Ohio Rev. Code Ann. §§ 2329.66(A)(6)(b), 3911.10
OK opt out	100% 31 Okla. St. Ann. § 1(A)(20)	Unlimited for 160 acres rural, 1 acre urban. 31 Okla. St. Ann. § 2	100% 36 Okla. St. Ann. § 3631.1	100% 36 Okla. St. Ann. § 3631.1
OR opt out	100% Ore. Rev. Stat. § 18.358	$39,600 Or. Rev. Stat § 18.395	100% so long as owner's estate is not beneficiary. Ore. Rev. Stat. § 743.046	$500/mo aggregate. Ore. Rev. Stat. § 743.049
PA	100%, except for amounts (1) contributed within 1 year (not including rollovers), (2) contributed in excess of $15,000 in a one-year period, or (3) deemed to be fraudulent conveyances. 42 Pa. C.S. §§ 8124(b)(1)(vii), (viii), (ix)	None	Income or return of $100/month 42 Pa. C.S. § 8124(c)(3)	$100/month 42 Pa. C.S. § 8124(c)(3)
PR	No statutory exemption.	$15,000 31 P.R. Laws Ann. §§ 1851 to 1857	100% if beneficiary is spouse legal representative of insured. 32 P.R. Laws Ann. § 1130(9).	$250/month 26 P.R. Laws Ann. § 1135
RI	100% R.I. Gen. Laws § 9-26-4(11), (12). No protection for non-ERISA qualified plans.	$300,000 R.I. Gen. Laws § 9-26-4.1	Non-owner, non-insured beneficiary's right to proceeds and avails protected from insured's creditors. R.I. Gen. Laws §§ 27-4-12, 27-18-24	None
SC opt out	IRA exemption limited to to the extent reasonably necessary for support. S.C. Code Ann. § 15-41-30(12)	$50,000 S.C. Code Ann. § 15-41-30(1)	$4,000 S.C. Code Ann. § 15-41-30(8)	None
SD	Limited to $250,000 S.D. Cod. Laws §§ 43-45-16, 17	Unlimited for 160 acres rural, 1 acre urban S.D. Cod. Laws § 43-45-3	$20,000 S.D. Cod. Laws § 58-12-4	$250/month S.D. Cod. Laws § 58-12-8
TN opt out	Principal 100% exempt. Tenn. Code Ann. § 26-2-105. Distributions 100% exempt to the extent they are on account of age, death, or length of service and debtor has no right or option to receive other than periodic payments at or after age 58	$7,500 unmarried / $12,500 unmarried 62+ / $20,000 married and one spouse 62+ / $25,000 married and both spouses 62+. Tenn. Code Ann. § 26-2-301	100% for insurance payable to spouse, child or dependents. Tenn. Code Ann. § 56-7-203. In re Huffines, 57 B.R. 740 (Bankr. M.D. Tenn. 1985)	100% for net amounts payable to spouse, child or dependents. Tenn. Code Ann. § 56-7-203.
TX	100% Tex. Prop. Code § 42.0021	Unlimited for 100 acres rural (single) / 200 acres rural (family), 1 acre urban. Tex. Const. Art. XVI, §§ 50, 51; Tex. Prop. Code §§ 41.001 to 002	100% Tex. Ins. Code § 1108.051	100% Tex. Ins. Code § 1108.051
UT opt out	100% except for amounts contributed within 1 year. Utah Code Ann. § 78-23-5(1)(a)(xiv)	$20,000 / $40,000 married Utah Code Ann. § 78-23-3	100% for the proceeds and avails, excluding any payments made on the contract during previous year. Utah Code Ann. § 78-23-5(1)(a)(xii)	None
VT	100% except for amounts contributed to self-directed plans within 1 year. 12 Vt. Stat. Ann. § 2740(16)	$75,000 12 Vt. Stat. Ann. § 2740(19)(D)	100% 12. Vt. Stat. Ann. § 2740(18), 8 Vt. Stat. Ann. § 3706. In re Gabelhart, 138 B.R. 425 (Bankr. D. Vt. 1992)	$350/month 8 Vt. Stat. Ann. §3709
VI	No statutory exemption.	$30,000 5 V.I. Code § 478(a)	None	None
VA opt out	Limited to interest in one or more plans sufficient to produce annual benefit of up to $25,000 (pursuant to actuarial table in statute). Va. Code Ann. § 34-34	$5,000 Va. Code Ann. § 34-4	100% for policies payable to others. Va. Code Ann. § 38.2-3122	None
WA	100% Wash. Rev. Code § 6.15.020	$40,000 Wash. Rev. Code § 6.13.030	100% for policies payable to others. Wash. Rev. Code § 48.18.410	$2,500/month Wash. Rev. Code § 48.18.430
WV opt out	Principal 100% protected. Exemption for distributions limited to to the extent reasonably necessary for support. W. Va. Code § 38-10-4(j)(5). No Roth IRA protection.	$25,000 W. Va. Code § 38-10-4(a)	$8,000 W. Va. Code § 38-10-4(h)	None
WI	100%, except that exemption for interest of "owner-employee" (50%+ owner) or interest in "owner-dominated" plans (90% of value for benefit of one or more owner-employees) limited to the extent reasonably necessary for support. Wisc. Stat. Ann. § 815.18(3)	$40,000 Wisc. Stat. § 815.20	$150,000 (but $4000 for policies issued within 2 years). Wisc. Stat. § 815.18(3)(f)	$150,000 cash value (but $4000 for contracts issued within 2 years). Wisc. Stat. § 815.18(3)(f)
WY opt out	100% exemption for qualified retirement plans. Wy. Stat. Ann § 1-20-110(a)(i), (ii). No statutory exemption for IRAs.	$20,000 Wy. Stat. Ann. § 1-20-101	100% Wy. Stat. Ann. § 26-15-129. In re Vigil, 74 Fed.Appx. 19 (10th Cir. 2003)	$350/month Wy. Stat. Ann. § 15-5-132(a)

Explanations and Cautions

¹State Opt-Out
The federal bankruptcy laws provide their own creditor exemptions. However, states may "opt out" of the federal exemptions and instead require that debtors filing for bankruptcy in a federal bankruptcy district within that state apply the state exemptions instead. Note, however, that some federal bankruptcy provisions will always trump contrary state law no matter what.

²Exemption for Tax-Qualified Retirement Plans, IRAs & Roth IRAs
Assets held in an ERISA trust (not merely a "plan") are immune from creditors under the anti-alienation provisions of 29 U.S.C. § 1056(d)(1). Some states have adopted an exemption along the lines of "reasonably necessary for support". This means that the exemption will be determined by the courts on a case-by-case basis. Suffice it to say that there is a wide gulf between what the courts think is "reasonably necessary for support" and what most debtors think is "reasonably necessary for support" -- in most states, this exemption usually works out to less than $100,000 in practice. Finally, the determination of whether an IRA or retirement plan qualifies as such under state law is often very complicated where the state law looks to federal tax law.

³Homestead
Of all the exemptions, the one for homestead is the most straightforward. However, even it is fraught with complications. Federal tax liens are not defeated by state homestead exemptions. Vacation and second homes are not protected by state homestead exemptions. Of course, residency is an issue too. The new federal bankruptcy act enacted in 2005 complicates things even more.

⁴Exemption for Life Insurance Cash Value from Claims of Policyowner's Creditors
The exemption for life insurance is complicated. There are three parties involved in a life insurance policy: The insured against whose life the policy is measured; the owner who has the rights to any cash value in the policy; and the beneficiary who will receive the policy proceeds upon the death of the insured. The insured and the owner are often the same person. The good states will protect the owner's cash value against creditors of the owner. The bad states will not protect the life insurance at all, or will only protect proceeds that are paid to beneficiaries when the insured dies. A state that only protects the proceeds paid to beneficiaries does not protect the cash value of the owner, so if the owner has a creditor then the creditor can take out whatever cash value is in the life insurance policy thereby gutting it.

⁵Exemption for (Non-IRA / Non-ERISA) Annuity Cash Value and Payments from Claims of Owner's Creditors
Similar to the exemption for life insurance, the exemptions for annuities do not always protect the owner's cash value in the annuity. To get the benefit of the exemption, the owner may have to annuitize the annuity and start taking payments. Where the state exemption allows annuity payments for "support", this usually means such a small amount as to be nominal.

CAVEAT: Beware the conflict of laws issues! One of the biggest problems with the state exemptions is in knowing which state's exemptions will apply. For instance, if a debtor living in a state that protects IRAs has their IRA account in a state that does not protect IRAs (or in a brokerage firm with nationwide offices), then the IRA might not be protected. Because of these conflict of laws issues, exemption planning can be very difficult and is fraught with many landmines that might allow a creditor to collect in a situation where the debtor was believed to be protected.

What is the biggest problem with the state exemptions?
For the state exemptions to work, the debtor must own the assets in his or her own name. However, this means that the assets are trapped in the estate for purposes of federal estate taxes. For those with large estates, this means that they will eventually have a creditor (the federal government) who will assuredly take up to 55% of the value of the assets regardless of contrary state law. This result means that wealthy people should normally forget about attempting to maximize the state exemptions and instead concentrate on lifetime transfers of assets to trusts and other structures for the benefit of their heirs, which transfers if properly done also will move the assets and also their future investment growth out of the reach of unforeseen creditors.

Asset Protection: State Information

Creditor Exemptions

Fraudulent Transfers

State Trust Acts

Business Entities

Other Useful Information