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West Virginia Income Maintenance Manual Chapter 24

West Virginia Income Maintenance Manual Page 55 Chapter 24 Long Term Care

24.8.2.D Transfers Related to a Life Estate 24.8.2.D.1 Transfer of Property with Retention of a Life Estate A transfer of property with the retention of a life estate interest is treated as an uncompensated transfer. To determine if a penalty is assessed and the length of the penalty, the Worker must compute the value of the transferred property and of the life estate, then calculate the difference between the two. Step 1: To determine the value of the transferred property, subtract any loans, mortgages or other encumbrances from the fair market value (FMV) of the transferred property. Step 2: Determine the age of the life estate holder as of his last birthday and the life estate factor for that age found in Chapter 5, Appendix A. Multiply the FMV of the transferred property by the life estate factor. This is the value of the life estate. Step 3: Subtract the Step 2 amount from the Step 1 amount. The result is the uncompensated value of the transfer. Step 4: Divide the Step 3 amount by the State’s average monthly nursing facility private pay rate of $11,903. The result is the length of the penalty. 24.8.2.D.2 Transfer of a Life Estate The value of a life estate interest is considered a transfer of resources when it is transferred or given as a gift.

NOTE: The value of a life estate may be excluded as a homestead property, if the individual intends to return to it.