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MAABD MAABD MAABD MAABD MAABD MAABD MAABD MAABD E-410 Division of Welfare and Supportive Services RESOURCES Medical Assistance Manual TYPES OF RESOURCES (not all inclusive) 24 Sept MTL 04/24 LIFE ESTATES RESOURCE TYPE DESCRIPTION

LIFE ESTATES

1. Personal Property

2. Conditional Exclusion

A life estate gives an individual for his/her lifetime certain rights in property. These rights are the right of possession, the right to use the property, the right to obtain profits from the property (i.e., collection of rents) and the right to sell his or her life estate interest. A contract establishing a life estate may restrain one or more of these rights. The owner(s) of a life estate do not have title to the property and do not have the right to sell the property.

The value of a customer’s life estate is determined by:

1) the age of the customer, 2) the number of owners, and 3) the fair market value of the property.

The above information must be verified and then sent to the Chief of E&P requesting a determination of the life estate value.

Exception: A life estate in the principal place of residence is an excluded resource and determining its value is not necessary.

Evaluate for potential transfer of assets.

Verification: (not all inclusive)

– Signed and dated statement from a licensed real estate broker – Written statement from county assessor's office – Tax lists – Copy of mortgage papers – Copy of deed – Copy of life estate contract