This bill proposes significant amendments to the Reissue Revised Statutes of Nebraska, aimed at increasing the amounts exempt from various forms of legal enforcement, such as levy, execution, and garnishment, while also adjusting these amounts for inflation. Notable changes include raising the exemption limit for medical savings accounts and health savings accounts from $25,000 to $40,831, and increasing the exemption for pension money and property for disabled veterans from $2,000 to $64,830. The bill also introduces a framework for adjusting these dollar limitations every five years, beginning July 1, 2030, based on the cumulative percentage change in the Consumer Price Index for All Urban Consumers.

Additionally, the bill modifies the homestead allowance for surviving spouses, increasing it to $20,000 for decedents who die before December 31, 2027, and to $29,142 for those who die on or after January 1, 2027. It raises the exemption for the value of a homestead from $120,000 to $228,148, with the Department of Revenue responsible for adjusting these limits every five years to reflect changes in housing prices. The bill also amends laws regarding the attachment and garnishment of proceeds from annuity contracts and life insurance policies, establishing that these benefits are generally exempt unless the beneficiary has been convicted of a serious crime. The dollar limitation on exempted interests is modified from $100,000 to $163,326, with similar adjustments mandated every five years. Overall, the bill aims to enhance financial protections for individuals and families in Nebraska.

Statutes affected:
Introduced: 25-1558, 25-1559, 30-2322, 30-2323, 40-101, 44-371, 44-1089