Page 89

89

C. Countable Real Property

1. Fee Simple

Fee simple ownership means absolute and unqualified legal title to real

property. The owner(s) has unconditional power of disposition of the

property during his or her lifetime. Upon his or her death, property held in

fee simple can always pass to the owner's heirs. Fee simple ownership

may exist with respect to property owned jointly or solely.

2. Life Estate Interest

a. A life estate interest is created when a person transfers real property

to another person but retains the rights to the property for the

remainder of his/her life. To determine the value of a life estate

interest, multiply the tax value by the life estate percentage from the

Life Estate/Remainder Interest Unisex Table based on the age of the

life estate holder. If there is more than one life estate holder, use the

age of the youngest. Refer to

https://secure.ssa.gov/poms.nsf/lnx/0501140120.

b. If there is an outstanding lien/mortgage against the property, multiply

the payoff amount by the same percentage from the Life

Estate/Remainder Interest Unisex Table. Subtract the a/b’s share of

the lien/mortgage from his/her share of the tax value to determine the

equity value.

NOTE: An Enhanced Life Estate Deed, sometimes called a “Lady Bird

Deed,” differs from the typical life estate deed as the property

is transferred at death, not before. The life tenant (grantor) can

sell the property and keep the proceeds, mortgage it and use the

equity, and profit off of their property without having to consult the

beneficiary. They can also revoke or amend the deed. This means

the grantor/owner or “life tenant” retains complete control over their

property while alive. Such an Enhanced Life Estate deed is not a

transfer of resources for Special Assistance IF no interest of present

value is being transferred to the grantee by the deed. All these

grantor rights must be specified clearly in the deed for it to qualify

as an Enhanced Life Estate with no interest of present value.

Contact your agency/county attorney with any questions concerning

the type of deed that’s been received or about the terms of an

Enhanced Life Estate deed and the potential for transfer of resources.

3. Remainder Interest

a. A remainder interest is created when a person transfers real property

to another person but retains the rights to the property for the SA-3200 III.