Page 199

CODE OF COLORADO REGULATIONS 10 CCR 2505-10 8.100 Medical Services Board

199 establishment of a life estate on a property results in the creation of two interests: a life estate interest and a remainder interest. c. “Remainder Interest” means an interest in property created at the time a life estate is established which gives the holder of the interest the right to ownership of the property upon the death of the life estate holder. An individual holding a remainder interest is free to sell his or her interest in the property unless the sale is restricted by the terms of the instrument which established the remainder interest. 2. General Provisions a. Life Estates Established before July 1, 1995 i) Transfer without fair consideration Treatment 1) The establishment of a life estate before July 1, 1995 by an individual or individual’s spouse shall not be considered a transfer without fair consideration. ii) Resource Treatment 1) A life estate owned by an individual or individual’s spouse that was established on exempt property shall be considered to be an exempt resource. 2) A life estate owned by an individual or individual’s spouse that was established on countable property shall be considered a countable resource. i) The value of the life estate shall be determined by using the methodology described at 8.100.7.H.3. 3) A remainder interest held by an individual or individual’s spouse on exempt property shall be considered an exempt resource.