Page 11

estate is based on the equity value of the property and the age of the life estate holder. The value is determined as follows: (1) Equity value. Determined by subtracting any encumbrances from the FMV of the real property (home). (2) Age of holder. Age of the estate holder rounded to the nearest year. (3) Life estate and remainder tables. These tables provide the value of a life estate and of a remainderman at any given age. The equity value of the real property is multiplied by the appropriate age figure from the tables. The State uses the life estate and remainder tables published by the U.S. Social Security Administration for the SSI program located in the Program Operations Manual System (POMS) at Section SI 01140.120. b. Excluded resource. The equity value of a life estate is an excluded resource if the provisions set forth in § 6.5.3(B)(1) of this Part are met with respect to: (1) Rhode Island residence -- The home is located in the State; (2) Equity value limit – The equity value of the life estate is at or below the limit set in Part 40-00-3 of this Title; and (3) Principal place of residence – The home is established as the principal place of residence and there is an intent to return to the home as specified in § 6.5.3(B)(2) of this Part. (4) Use of property – The life estate holder may use the property as a home or sell his or her ownership interest or may rent the property. If the life estate was purchased on or after July 1, 2006, the applicant or beneficiary must have resided in the home for a period of at least one (1) year for the home exclusion to apply. (5) Salability – If a life estate cannot be sold, then it is an unavailable resource and is excluded on that basis in accordance with the provisions in § 6.5.4 of this Part. c. Disqualifying transfer. The establishment of a life estate may be considered a disqualifying transfer which results in a penalty period as set forth in § 6.9 of this Part.