3) Life Estate Example – Customer is institutionalized, but intends to return to the prior residence

The customer was living in her daughter’s home, but had to enter a nursing facility. After entering the nursing facility, she used $19,000 of her savings to buy a life interest in her daughter’s home.

Even though the customer lived in the home before entering the nursing facility, the life estate is not excluded as home property because she did not have an ownership interest in her daughter’s home before she was institutionalized.