Effective January 1, 2022, the death benefit is included in the new exemption under Section 03.03.09. Therefore, lump sum death benefits and lump sum compensation for injury or loss of physical or psychological integrity are added together and the $381,294 exemption applies to the total of the two benefits.
This new liquid asset exemption is separate from the existing exemption for the $381, 294 aggregate value of property and liquid assets under Section 03.02.06.01 and does not include amounts received from life insurance or an estate. In addition, these exemptions are not cumulative. Finally, the excess amount is considered as liquid assets for which the basic liquid asset exemptions do not apply.
The total of the applicable lump sums may be excluded up to $381,294. The exemption is increase on January 1 of each year.
For more information concerning the treatment of those amounts, please refer to Section 03.03.09.