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345 (07/2026) Chapter 2:Eligibility • Section 5: Financial eligibility A life estate owned by a member of the financial group is treated as follows: • If a member of the financial group is living on the property, the value of the life estate is treated as a home • If a member of the financial group is not living on the property, the value of the life estate is counted as a resource. The life estate is considered unavailable if other parties with an ownership interest in the property refuse to sell their interest or refuse to purchase the life estate interest in the property. For those in a non-standard living situation: • A transfer for less than fair market value in which a member of the financial group retains a life estate is a disqualifying transfer. A transfer is considered for less than fair market value if the fair market value of the transferred resource on the day prior to the transfer is greater than the sum of the value of the rights conferred by the life estate plus the compensation received for the transfer. • If a member of the financial group purchases a life estate interest in the home of another individual on or after July 1, 2006, the purchase is considered a transfer of resources unless the individual resides in this home for at least 12 consecutive months after the date of the purchase. The value of the transfer for an individual who does not reside in the home for at least 12 consecutive months is calculated by using the purchase price of the life estate. For MSP and HSD medical programs, resources are not considered in eligibility determination. Note: It is possible for an individual to have an interest in a life estate and not reside in the home. This does not diminish the legal interest in the property. The individual’s name is still on the property and they would be entitled to part of the proceeds from the sale of the home as an interest holder. Use the life estate table to determine the portion of the proceeds that would be an appropriate share. Maintenance costs, repairs and taxes are the responsibility of the life estate holder — so the share can be offset by those. Costs of improvements to the home are not costs that a life estate holder is responsible for and can’t be used to diminish the share of the proceeds. Oregon Administrative Rule(s) 461-145-0310 — Life Estate 410-200-0015 (54) and (55) — General Definitions 414-175-0035 — Specific Financial Requirements Life insurance In ONE, Life Insurance Proceeds are coded on the Unearned Income screen: • Unearned Income Category – Other Income • Unearned Income Type – Life Insurance Proceeds Benefits paid to the beneficiary of a life insurance policy Count as unearned income in the month received. ODHS|OHA counts benefits as received when the insured individual dies or when the insured individual is eligible for and receives accelerated payments before death, such as when the insured individual has a terminal illness.