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MAY 3, 2018 NEBRASKA HEALTH AND MEDICAID ELIGIBILITY MANUAL LETTER #43-2018 HUMAN SERVICES MANUAL 477-000-030

Example 4 Client deeded the farm to the son several years ago and retained a life estate. The agreement with the son is a 60/40 crop and expense split. The son, who farms the land, drilled a new well and terraced the land. The son claims these expenses were charged against mom's share of the income and there is no remaining income to give her. Capital improvements such as new terracing, updating a home, new wells and irrigation for prior dry land farming, are not allowed as an expense for the life estate holder. These are capital improvements to real property that is owned by the remainderman.

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Official source

MAY 3, 2018 NEBRASKA HEALTH AND MEDICAID ELIGIBILITY MANUAL LETTER #43-2018 HUMAN SERVICES MANUAL 477-000-030

Example 4 Client deeded the farm to the son several years ago and retained a life estate. The agreement with the son is a 60/40 crop and expense split. The son, who farms the land, drilled a new well and terraced the land. The son claims these expenses were charged against mom's share of the income and there is no remaining income to give her. Capital improvements such as new terracing, updating a home, new wells and irrigation for prior dry land farming, are not allowed as an expense for the life estate holder. These are capital improvements to real property that is owned by the remainderman.