Page 26
26
property and retains a life estate. (See X.D. below for transfers of remainder interest in real property.)
a. The date of transfer is the day the deed is signed by the grantor, delivered, and accepted by the grantee. b. The uncompensated value is the equity of the remainder interest granted, less compensation received. Refer to MA-2230, Financial Resources, for instructions on determining the equity value of a remainder interest.
3. Evaluate for transfer of assets when an a/b, or the a/b’s spouse transfers a life estate interest.
a. The date of transfer is the day the deed is signed by the grantor, delivered, and accepted by the grantee.
b. Determine if current market value was received for the life estate. Refer to the Life Estate and Remainder Interest Tables website, https://secure.ssa.gov/poms.nsf/lnx/0501140120.
c. Multiply the tax value of the real property on the date the life estate is transferred by the corresponding life estate value for the age of the individual whose life determines the length of the life estate. The result is the value of the transferred life estate.
d. Determine the sanction period. See XI. below.
4. Evaluate the purchase of a life estate in another individual’s home for a transfer of asset sanction.
a. At the time of application for institutional services the purchaser has not resided in the home for a period of at least 12 consecutive months following purchase of the life estate. The 12 months begins the date the purchaser moves into the home and ends on the 365th day. Vacations, overnight visits, and acute hospital stays should not be deducted from the 12-month period provided this continued to be the individual’s residence.
(1) Determine the sanction period based on the purchase price. (2) Continue the sanction period until it is complete even if the person continues to reside in the home beyond 12 months.
b. At the time of application for institutional services they had resided in the home for at least 12 consecutive months following purchase of the life estate and:
(1) The purchaser paid equal or more than current market value of the life estate