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• It is based on a fixed rate per acre method • The taxing authority does not provide an assessment ratio, or only provides a range, for example, between 50% and 75%. If the worker questions an estimate from a knowledgeable source, one or more additional estimates are to be obtained and averaged to establish fair market value. If the lesser value is accepted, it must be entered on the Real/Personal Property resources screen in the Equity field. Since the eligibility system calculates the equity based on the worker entered FMV of property, the equity override (EO) field must be answered "Y" to enable the lesser equity to be entered and used by the system in the eligibility determination. 2605.25.10.05 LIFE ESTATE/REMAINDER VALUE Life Estate: A life estate conveys to an individual certain rights in property for his lifetime. The owner of a life estate generally has the right of possession and use of the property, as well as the right to obtain profits from the property and to sell his life estate interest. Remainder Interest: When an individual conveys property to one person for life (life estate holder) and to a second person (the remainderman) upon the death of the life estate holder, both a life estate interest and a remainder interest are created in the property. A remainderman cannot sell his interest in the property while the life estate holder is alive unless otherwise specified in the deed. At the death of the life estate holder, the remainderman will hold full title. The fair market value of a life estate or remainder interest is calculated by: • Determining the fair market value of the property (2605.25.10) in the usual manner and refer to the Life Estate and Remainder Interest Tables in Section 2605.25.10.10. • Using the individual's age as of his last birthday, multiply the figure in the Life Estate or Remainder Interest column for that age by the fair market value of the property to obtain the value of the life estate or remainder interest. • Advise the individual or person acting on their behalf of the presumed value of the life estate obtained from the table and provide them the opportunity to submit documentation of a lesser value. Such documentation will be acceptable only if it is provided by a knowledgeable source based on an evaluation of the specific life estate in question. If the lesser value is accepted, it must be entered on the Real/Personal Property Resources screen in the Equity field. Since the eligibility system calculates the equity based on the worker entered FMV of property, the equity override (EO) field must be answered "Y" to enable the lesser equity to be entered and used by the system in the eligibility determination.