Case Summary:
The Chapter 7 Trustee objected to the Debtors' claim of exemptions in an unimproved 21-acre parcel of land under Wis. Stat. § 815.20, the Wisconsin homestead exemption. The Trustee contended that the vacant land was not "reasonably necessary for the use of the dwelling as a home" as required by the statute. The parcel is adjacent to the parcel on which the Debtors' home sits. In response to the Trustee's objection, the Debtors argued that the vacant parcel was reasonably necessary to the homestead because it generates rental income and income from the sale of timber. In addition, the Debtors collect firewood, hunt, and hold family reunions on the parcel. They also receive tax benefits by participating in a Managed Forest Lands stewardship forestry plan. Acknowledging the strong Wisconsin policy favoring a debtor's right to claim a homestead exemption, the Court noted a line of cases that recognized a limit to that right. Interpreting the phrase "reasonably necessary for the use of the dwelling as a home," the Court distinguished between uses of the land that simply create some benefit, and uses that are truly necessary to the home. Applied here, the Court found that the Debtors' use of the vacant parcel was periodic and primarily recreational, and that the income generated from it was insufficient to be considered necessary. As a result, the Court concluded that the land was not reasonably necessary for the use of the dwelling as a home. The Trustee's objection was sustained.

Statute/Rule References:
11 U.S.C. § 522(b) -- Exemptions - State-Law
Wis. Stat. § 815.20 -- Homestead Exemption

Key Terms:
Exemptions
Homestead Exemption