5333.2 Valuing the Life Estate

Official source

The value of either the life interest or the remainder interest is established by considering the life tenant’s age and total value of the property. The value derived from using the T-3, Life Estate Valuation Table , which establishes a value based on the an actuarially determined life expectancy of the life tenant.

However, the applicant/recipient may provide evidence to demonstrate a lower fair market is applicable.

Example : Nancy is a 56 year old woman with terminal cancer. She named her adult son, Adam, as the remainder owner on her home a number of years earlier. Using the life estate valuation table, the fair market value of her life estate is $12,000, because of Nancy’s age. But, given her health status, Adam cannot find a buyer. Adam and Nancy may demonstrate a fair market value based on factors other than Nancy’s age, such as her health status.

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5333.2 Valuing the Life Estate

Official source

The value of either the life interest or the remainder interest is established by considering the life tenant’s age and total value of the property. The value derived from using the T-3, Life Estate Valuation Table , which establishes a value based on the an actuarially determined life expectancy of the life tenant.

However, the applicant/recipient may provide evidence to demonstrate a lower fair market is applicable.

Example : Nancy is a 56 year old woman with terminal cancer. She named her adult son, Adam, as the remainder owner on her home a number of years earlier. Using the life estate valuation table, the fair market value of her life estate is $12,000, because of Nancy’s age. But, given her health status, Adam cannot find a buyer. Adam and Nancy may demonstrate a fair market value based on factors other than Nancy’s age, such as her health status.