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Chapter: 1600 Assets Program: MSSI, SFP 6

If the individual cannot sell his share of the property without the consent of the other owner and the other owner refuses to give his consent, the property cannot be considered a countable asset.

1640.0305.03 Life Estate Ownership (MSSI, SFP) A life estate gives the individual certain lifetime rights to the property that generally cannot be inherited upon the individual's death.

Where an individual owner conveys property to another individual for life (life estate holder) and to a second individual (the remainderman) upon the death of the life estate holder, both a life estate interest and a remainder interest have been created in the property. Upon the death of the life estate holder, the remainderman receives ownership of the life estate. The property owner may designate several individuals as remaindermen who would hold ownership jointly or in common by will or agreement.

The duration of a life estate is measured by the lifetime of the tenant or of another individual, or by the occurrence of some specific event, such as remarriage of the tenant. The owner of a regular life estate does not have title to the property but has the right of possession, the right to use and obtain profits from the property, and the right to sell his life estate interest.

The owner of an enhanced life estate (also known as a lady bird deed or life estate with powers) has the same rights as complete ownership, including the right to sell without the consent of the remainderman. Lady bird deeds and life estates with powers are counted the same as other real property an individual may own and it may be excluded if it qualifies as the individual’s homestead, including under intent to return when absent from the home. 1640.0305.04 Ownership Interest in Unprobated Estate (MSSI, SFP) An individual may have ownership in an unprobated estate if the individual:

1. is an heir or a relative of the deceased; 2. receives any income from the property; and 3. has acquired rights in the property due to the death of the deceased according to state law.

When the property must be included and this places the individual's assets over the limit, ownership must be determined according to the appropriate state laws. In such cases, the individual owns the asset if:

1. documents such as a will or court record indicate the individual is an heir to any of the deceased's property; or 2. the individual has use of or receives income from the property; or 3. documents establish a relationship between the individual and the deceased which, under state law, awards the individual a share of the deceased's property and the distribution and use of the inheritance is not legally contested or limited.

When evidence raises legal questions, the eligibility specialist must refer the case to the Circuit Legal Counsel for a legal opinion regarding whether the individual owns any of the property and, if so, the individual's share of the property.