Does the Homestead Exemption Extend to Mineral Rights?

Not in Ohio.

As reported by Robin Miller of CBAR, under Ohio Rev. Code § 2329.66(A)(1)(b), which permits the exemption of “one parcel or item of real or personal property that the [debtor] … uses as a residence,” the debtors could claim a homestead exemption in two contiguous parcels where the debtors used both parcels as their residence. The debtors’ home was on one parcel while the driveway to and utility lines for the residence were on the other.

Agreeing with In re Cassetto, 475 B.R. 874 (Bankr. N.D. Ohio 2012, although employing different reasoning, the court in In re Way, 2014 WL 4658745 (Bankr. N.D. Ohio, Sept. 18, 2014), reconsideration denied, 2014 WL 5794835 (Nov. 6, 2014) held that, since the Ohio homestead exemption requires that the debtor use the property “as a residence,” and oil and gas rights are not used as part of a debtor’s residence, the Ohio homestead exemption does not extend to the debtor’s oil, gas, and other mineral rights in the homestead property.

(case no. 6:12-bk-60209) (Bankruptcy Judge Russ Kendig)

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