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MEDICAL SERVICES POLICY MANUAL, SECTION E

E 513 Determining Value of Ownership Interest

b. Timber Rights - Timber rights permit an individual to cut and remove freestanding trees from property owned by another. A life tenant also has certain timber rights in keeping with good husbandry. c. Easement - An easement is a property right whereby one has the right to use of the land of another for a special purpose. d. Leasehold - A leasehold conveys to an individual, at the owner’s will and usually for an agreed rent, the control of property for a definite period of time. It does not designate rights of ownership. Leaseholds may be carved out of life estates.

Determining Value of Ownership Interest MS Manual 02/16/17 In determining the equity value (i.e. current market value less encumbrances) of real property, the type of ownership, the number of additional owners, and the individual’s actual ownership interest must all be taken into consideration. 1. Fee Simple Ownership (Sole Ownership) - If the individual is the sole owner of property and has the right to dispose of it, the equity value of the property is a countable resource when the property is not an excludable resource. 2. Shared Ownership -If the property is jointly owned by two or more individuals, the equity value of the property is counted to the individual in proportion to his ownership interest. a. Joint Tenancy - The property’s equity value is divided by the number of owners in proportion to the ownership interest of each to determine the individual’s ownership interest. When the individual’s ownership interest plus other countable resources exceed the resource limit, determine if the individual is free to sell his interest. When consent to sell joint tenancy property can be obtained from the other owner(s), the property will be considered a countable resource. When it is established (in writing) that consent to sell joint tenancy property cannot be obtained from the other owner(s), the property will not be considered a countable resource.