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Note: An unavailable asset may still be considered when determining whether an institutionalized person has divested (see SECTION 17.2.10 UNAVAILABILITY). 16.2.2 Real Property Non-exempt real property (see SECTION 16.8 REAL PROPERTY) is unavailable when: 1. The person who owns the property lists it for sale with a realtor.

If an institutionalized person owns property that is unavailable because it is listed for sale, he or she can use some of his or her income to maintain the property until it is sold. Allow minimal heat and electricity costs so as to avoid physical damage to the property while it is waiting to be sold. Also allow a minimum amount of property insurance coverage. Do not allow taxes and mortgage payments; they must be paid from the proceeds of the sale.

The non-exempt real property is unavailable and minimal maintenance costs are allowed as long as the person is making a good faith effort to sell the property at current market value.

If the member refuses a fair market value offer(s) while the property is listed for sale with a realtor, the member is no longer making a good faith effort to sell the property. In this case, the property is an available asset and minimal maintenance costs will no longer be allowed. 2. A joint owner who is outside the fiscal test group refuses to sell the property.

When the member is a co-owner of the property with someone outside the fiscal group, you must determine whether it is owned as a joint tenancy or tenancy-in-common.

Joint tenants have a right of survivorship. That is, upon the death of one joint tenant, the other inherits the share of the deceased. A joint tenant's interest may not be sold without forcing the sale of the entire property.

Tenants-in-common has no right of survivorship. A tenant-in-common may bequeath his or her share of the property to anyone he or she chooses. He or she may also sell his or her share during his or her lifetime. This page last updated in Release Number: 22-02 Release Date: 08/01/2022 Effective Date: 08/01/2022 16.3 Separate and Mixed Assets When a Medicaid group keeps an exempt asset in: 1. A separate account or an account with other exempt assets, exempt the exempt asset: a. Indefinitely, for example, most payments to Native Americans (see SECTION 15.3.14 PAYMENTS TO NATIVE AMERICANS), or b. For as long as the exemption can be applied to the asset, for example, EITC (see SECTION 16.7.8 EARNED INCOME TAX CREDIT), which is exempt for 12 months following the month of receipt. 2. An account mixed with other assets (some of which are non-exempt), exempt only the portion that is considered the exempt asset: