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3. Income Producing Resources

Land Contract Life Estate Annuity Definition Entered into when the seller of a property also finances the purchase. Real property in which a client or spouse has a “life interest.” It is a property that the client once owned and has now transferred the remaining interest to another party. A life estate is only a countable resource if sold. A revocable, assignable, or saleable annuity is countable as a resource and provides a right to receive periodic payments, either for life or a term of years.

Irrevocable, non-assignable annuities are not resources, but are a source of unearned income.

The verification pieces would be the same for all annuities.

Verification Source •A copy of the agreement to sell/purchase. •A copy of the trustee deed and/or promissory note (if available). •A copy of the recorded deed. •A life estate may be identified on the deed by the words: "life use" or "for use." •The Department sends Annuity verification form to be completed by the issuer. •The application for annuity, annuity issuance letter and related documents.

When to Verify •At initial application. •At renewal applications if changes have occurred. •If client reports change that affects eligibility. •At initial application. •At renewal applications if changes have occurred. •If client reports change that affects eligibility. •At initial and renewal applications. •If client reports a change that affects eligibility. Exemptions, Disregards and Comments A land contract is not counted as a resource. However, it must be verified, and payments are counted as unearned income. •The Department will review for deprivation if the client is in institutionalized care (Example: nursing home or waiver). •The Department will review for deprivation if the client is in institutionalized care (Example: nursing home or waiver). Questions to Consider •Do you own land in addition to the land your home is on? •Do you own any farmland or land not being used? •Are you owner financing the purchase of land that you own?

•Are you receiving income from a property you transferred or once owned? N/A Sources for More Information 477 NAC 23-003.05(A)(ii) 477-000-031

477 NAC 23-003.05(B)(vi) 477-000-038

477 NAC 23-003.05(A)(vi)(1) through 003.05(A)(vi)(1)(e)