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1. Determine the Current Market Value a. Verify and record tax value of real property by using county tax office records. For Medicaid determinations, the tax value is the current market value (CMV), unless rebutted according to VII.E. b. Deduction for Individual Over Age 65 - If the person was age 65 or older, or permanently disabled on January 1 of the current tax year, county tax offices make a deduction from the assessed value before taxes are computed. For resources, the tax assessed value, before any such deduction, is the CMV. 2. Verify Encumbrances For property that is not excluded, verify encumbrances by written or verbal statement of the creditor. Also, verify encumbrances for income producing property when determining if it meets 6% requirement. See Section IX. a. Encumbrances reduce the a/b’s equity in a countable asset. Examples of encumbrances are: (1) Liens and mortgages by banks or loan companies, (2) Lien by a hospital, nursing home or other medical provider. Must specifically identify the asset which is attached and there must be an outstanding bill for a/b. County dss must see lien. b. It is the a/b’s responsibility to provide a dated, signed written statement or provide the name of creditor, loan number, or other information necessary to verify encumbrances. c. Verify the amount needed to pay off the mortgage or lien as of the date of the verification, rather than the sum of the remaining payments. d. Remainder Interest - Multiply any amount needed to pay off the mortgage/lien on the property by the Remainder % from the Life Estate and Remainder Interest Tables, based on the age of the life estate holder. (If there is more than one life estate holder, use the age of the youngest life estate holder.) Deduct this amount from the value obtained in VII.B.4.b. to establish equity. Refer to the chart at, https://secure.ssa.gov/poms.nsf/lnx/0501140120 3. Deduct Encumbrances Subtract encumbrances from the CMV of the countable property interest to arrive at countable equity. 44