78B-5-507 - Exemption of proceeds from property sold, taken by condemnation, lost, damaged, or destroyed -- Tracing exempt property and proceeds.
78B-5-507. Exemption of proceeds from property sold, taken by condemnation,lost, damaged, or destroyed -- Tracing exempt property and proceeds.
(1) (a) An individual who owned property described in this Subsection (1) is entitled toan exemption of proceeds that are traceable for one year after the compensation for the propertyis received if:
(i) (A) the property, or a part of the property, could have been claimed exempt underSubsection 78B-5-505(1)(a)(i) or (ii); or
(B) the property is personal property subject to a value limitation under Subsection78B-5-506(1)(a), (b), or (c); and
(ii) the property has been:
(A) sold or taken by condemnation; or
(B) lost, damaged, or destroyed; and
(C) the owner has been compensated for the property.
(b) The exemption of proceeds under this Subsection (1) does not entitle the individual toclaim an aggregate exemption in excess of the value limitation otherwise allowable underSection 78B-5-503 or 78B-5-506.
(2) Money or other property exempt under Subsection 78B-5-505(1)(a)(iii), (iv), (v), (vi),(vii), (xiii), or (xiv) remains exempt after its receipt by, and while it is in the possession of, theindividual or in any other form into which it is traceable.
(3) Money or other property and proceeds exempt under this chapter are traceable underthis section by application of:
(a) the principle of:
(i) first-in first-out; or
(ii) last-in last-out; or
(b) any other reasonable basis for tracing selected by the individual.
Renumbered and Amended by Chapter 3, 2008 General Session