5333.1 Treatment of Life Estate Ownership

Official source

Both the life interest and the remainder interest in property are countable as a resource. However, property in use as a home or income producing may be exempt. For property currently in use as a home, see 5340 . If the property is income-producing, refer to 5332 . Exemptions apply only to the specific individual meeting the exemption.

Example : Edna transferred a remainder interest to her son, Dave. Edna continues to live in the home. The life interest is exempt for Edna as she is living in the home. But, the remainder interest owned by Dave is countable if he were to apply for assistance.

Either the remainder owner or the life tenant may sell their individual ownerships without the permission of the other. The refusal of the other owner to sell is not considered a legal impediment to the sale, but may be used as an argument to reduce the fair market value of the property per 5331.2 .

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5333.1 Treatment of Life Estate Ownership

Official source

Both the life interest and the remainder interest in property are countable as a resource. However, property in use as a home or income producing may be exempt. For property currently in use as a home, see 5340 . If the property is income-producing, refer to 5332 . Exemptions apply only to the specific individual meeting the exemption.

Example : Edna transferred a remainder interest to her son, Dave. Edna continues to live in the home. The life interest is exempt for Edna as she is living in the home. But, the remainder interest owned by Dave is countable if he were to apply for assistance.

Either the remainder owner or the life tenant may sell their individual ownerships without the permission of the other. The refusal of the other owner to sell is not considered a legal impediment to the sale, but may be used as an argument to reduce the fair market value of the property per 5331.2 .