Page 7
Louisiana Medicaid Eligibility Manual Eligibility Factors
Reissued October 21, 2025 Page 7 of I-1670 Replacing January 27, 2025 Revised/added text indicated by underscore Deleted text indicated by “**”
2. Refer to Z-1300 Usufruct and Remainder Interest Tables.
3. Select the figure for the age of the applicant at the last birthday.
4. Multiply the figure in the usufruct column by the current market (equity) value of the property.
5. The result is the Life Estate value.
6. Compare the life estate value to the purchase amount for the life estate interest.
7. If the amount paid for the life estate interest is greater than the life estate value, the difference is treated as a transfer for less than FMV.
• Transfer of income; and/or
When income has been transferred as a lump sum (the money is transferred in the same month it was received), the penalty period is based on the amount of the lump sum payment.
When income received on a regular basis, such as a pension is transferred, use the total amount of income expected to be received during the individual’s lifetime based on an actuarial projection of the individual’s life expectancy, and calculate the penalty on the basis of the projected total income transferred. Refer to Z-1200 Life Expectancy Tables.
• Purchasing a Loan, Promissory Note, Mortgage.
Countable assets include funds used to purchase a promissory note, loan, or mortgage. Establishment of promissory notes, loans, or mortgages by the applicant or spouse is a transfer of assets unless all of the following criteria are met:
o The repayment term must be actuarially sound;
o Payments must be made in equal amounts during the term of the loan with no deferral of payments and no