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Kentucky Asset Protection Laws

Filed under Asset Protection Strategies. Fact checked on April 22, 2012.

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These assets are exempted from a state court or bankruptcy proceeding in Kentucky.

Homestead: Real or personal property used as residence up to $5,000.

Pensions and Retirement Benefits: Funds exempt for firefighters, police, teachers, state employees and county government employees. Other pensions exempt if needed for support. IRA exemptions for conventional, Roth, SEP and SIMPLE plans. Limited to contributions that are made more than 120 days before bankruptcy filing. Roth IRAs and regular IRAs up to $1,245,000 per person.

Insurance: Annuity benefits up to $350 per month. Life insurance, if beneficiary is a married woman or not the insured, or a clause in the policy prohibits payment to creditors, or if a group policy. Health or disability contract benefits. Cooperative life or casualty insurance benefits. Fraternal society benefits.

Personal Property: Burial plot up to $5,000 in lieu of homestead exemption. Clothing, jewelry and furnishings up to $3,000 total. Payments for lost earnings needed for support. Medical expenses. Reparation benefits. Motor vehicle up to $2,500. Personal injury recoveries up to $7,500 (not to include pain and suffering). Wrongful death recoveries.

Tools of Trade: Tools up to $300, plus artisans in the business of maintaining mechanical or electrical equipment in general use, and ministers, attorneys, doctors, chiropractors, veterinarians and dentists may exempt a motor vehicle worth up to $2,500. Ministers, attorneys, doctors, chiropractors and veterinarians may also exempt up to $1,000 of professional equipment. Farmers may exempt up to $3,000 in poultry, livestock, tools and equipment.

Miscellaneous: Business partnership property. Alimony and child support.

Wages: Greater of 75% of earned but unpaid wages or excess of disposable wages over 30 times federal minimum wage.

Public Benefits: Unemployment compensation. Workers' compensation. Aid to blind, aged and disabled. AFDC. Crime victim's compensation.

Wild Card: $1,000 of any property.

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