Opinion ID: 1176286
Heading Depth: 1
Heading Rank: 1

Heading: Exempt Property

Text: Under the provisions of the UUPC, the devolution of a person's estate upon his or her death is subject to the restrictions set out in the Code. Specifically, section 75-3-101 provides: The power of a person to leave property by will and the rights of creditors, devisees, and heirs to his property are subject to the restrictions and limitations contained in this code to facilitate the prompt settlement of estates. That section further provides that upon death, a person's personal and real property devolves on persons named in a will or on intestate heirs subject to homestead allowance, exempt property and family allowance, rights of creditors, elective share of the surviving spouse, and administration. The exempt property statute, Utah Code Ann. § 75-2-402 (1978), reads as follows: In addition to the homestead allowance, the surviving spouse of a decedent who was domiciled in this state is entitled from the estate to value not exceeding $3,500 in excess of any security interests therein in household furniture, automobiles, furnishings, appliances, and personal effects... . [I]f there is not $3,500 worth of exempt property in the estate, the spouse or children are entitled to other assets of the estate, if any, to the extent necessary to make up the $3,500 value. Rights to exempt property and assets needed to make up a deficiency of exempt property have priority over all claims against the estate, except reasonable funeral expenses, and the right to any assets to make up a deficiency of exempt properties shall abate as necessary to permit prior payment of the reasonable funeral expenses, homestead allowance, and family allowance. These rights are in addition to any benefit or share passing to the surviving spouse or children by the will of the decedent unless otherwise provided, by intestate succession, or by way of elective share. The purpose of the allowances is to ensure that a surviving spouse is not left penniless and abandoned by the death of a spouse. The allowances are not designed to support the family until they share in the estate, but irrespective of whether they do or do not share. In re Estate of Lawson, 721 P.2d 760, 762 (Mont. 1986). The family protection provisions of the Uniform Probate Code were intended by the drafters to protect a surviving spouse from disinheritance by a decedent, and the surviving spouse's right to exempt property is absolute. In re Estate of Dunlap, 199 Mont. 488, 649 P.2d 1303, 1305 (1982); In re Estate of Merkel, 618 P.2d 872 (Mont. 1980). The language of section 75-2-402 is clear in giving the exempt property claim priority over all claims against the estate, except reasonable funeral expenses, homestead allowance, and family allowance. In the case before us, the decedent left no real estate, and no homestead exemption was therefore claimed. The payment of funeral expenses and family allowance totaled $6,041.09, leaving a net negative balance in the estate of $1,599.31 and therefore no assets from which the widow could claim her exempt property.