Page 48

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued June 9, 2026

Page 48 of I-1630 Replacing September 23, 2024

Revised/added text indicated by underscore

Deleted text indicated by “**” land, houses, shares of stock, vehicles, furniture, animals, etc. determine usufruct value as follows:

Determine the value of usufruct held by the applicant/beneficiary using the following steps:

• Determine the equity value of the proportionate share of the property to which the applicant/beneficiary has separate usufruct rights.

• Refer to Z-1300 Usufruct and Remainder Interest Tables.

• Select the line for the age at the last birthday of the owner of usufruct on the chart.

• Multiply the figure in the usufruct column for the age by the equity value of the proportionate share of the property.

• The result is the usufruct value.

Unless the instrument (will or deed) establishing the usufruct places restrictions on the rights of the usufruct owner, the owner has the right to possess, use, and obtain profits from property and to sell their usufruct interest. The market value of usufruct interest is likely to be reduced since such a sale is subject to the remainder interest.

Remainder Interest

An individual may convey usufruct to one person for that person's life and convey ownership to a second person. The person to whom ownership is conveyed is referred to as the remainder man.

Unless restricted by the instrument establishing the remainder interest, the remainder man is generally free to sell their interest in the physical property even before the life estate interest expires. In such cases, the market value of the remainder interest is likely to be reduced since such a sale is subject to the life estate interest.

At the death of the usufruct owner, the remainder man will hold full title. If there are two or more remainder men, the remainder interest will be shared among the remainder men.