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(5) “compensation” means something received in compensation for the transfer of an asset to another individual or entity; “compensation” includes cash, in-kind income, real or personal property, services, and assumption of a legal debt;

(6) “fair market value” means

(A) for personal property, the value of an asset in the community if sold by a willing seller to a willing buyer, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts; and

(B) for real property, the tax-assessed value of the property for the year of the transfer; if no tax-assessed value exists, the fair market value is the value of the real property in the community if sold by a willing seller to a willing buyer, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts;

(7) “equity” means, with respect to real or personal property, the fair market value less any legal encumbrance; in this paragraph, “legal encumbrance” includes a mortgage, a lien, and a judgment;

(8) “life estate” means an estate or interest in real property held by an individual who has the legal right to occupy, use, and profit from the real property until that individual dies, at which time the life estate ends and the property returns to the owner of the remainder interest in the property;

(9) “long-term care spouse” means a spouse residing or likely to reside in a medical institution for a continuous period of institutionalization, or who is approved under 7 AAC 130.205 — 7 AAC 130.219 for or is receiving home and community-based waiver services;

(10) “penalty period” means the period of time during which an individual is ineligible for long-term care services based on imposition of a transfer-of-asset penalty;

(11) “spouse” means an individual legally married to a member of the opposite sex, whether the individuals are living together or apart;

(12) “transfer” means to change ownership or title, in whole or in part, from the transferor to the transferee, including any action eliminating or reducing control of an asset;

(13) “uncompensated value” means the difference between the equity value of an asset at the time of the transfer and any payment or compensation received. (Eff. 7/20/2007, Register 183; am 2/1/2010, Register 193; am 7/1/2013, Register 206) Statutory Authority: Authority: AS 47.05.010 AS 47.07.020 AS 47.07.040

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(6) “fair market value” means

(10) “penalty period” means the period of time during which an individual is ineligible for long-term care services based on imposition of a transfer-of-asset penalty;

(11) “spouse” means an individual legally married to a member of the opposite sex, whether the individuals are living together or apart;

(12) “transfer” means to change ownership or title, in whole or in part, from the transferor to the transferee, including any action eliminating or reducing control of an asset;