Page 1981

West Virginia Income Maintenance Manual Chapter 24

West Virginia Income Maintenance Manual Page 56 Chapter 24 Long Term Care

24.8.2.D.3 Purchase of a Life Estate The purchase of a life estate interest in another individual’s home is treated as an uncompensated transfer, unless the individual who purchased the life estate interest resides in the home for at least one year after the purchase. The amount of the transfer is the entire amount used to purchase the life estate. If the individual has resided in the home for at least one year after the life estate was purchased, determine the value of the life estate as follows. ➢ No Intent to Return If the individual does not intend to return to the home in which the life estate was purchased, the value of the life estate is an asset, see Section 5.5. When the individual has no intent to return due to domestic abuse, the life estate continues to be excluded until the individual establishes a new principal place of residence or otherwise takes action rendering the life estate no longer excludable. ➢ Intent to Return The purchase of a life estate may be excluded as homestead property if the individual intends to return to the home and the individual resided in the home for at least one year after the purchase. 24.8.2.E Transfer to Purchase an Annuity An annuity that is revocable or assignable is considered to be a countable asset. See Section 5.5.2 for more information on treating annuities as an asset.

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Page 1981

Official source

West Virginia Income Maintenance Manual Chapter 24

West Virginia Income Maintenance Manual Page 56 Chapter 24 Long Term Care

24.8.2.D.3 Purchase of a Life Estate The purchase of a life estate interest in another individual’s home is treated as an uncompensated transfer, unless the individual who purchased the life estate interest resides in the home for at least one year after the purchase. The amount of the transfer is the entire amount used to purchase the life estate. If the individual has resided in the home for at least one year after the life estate was purchased, determine the value of the life estate as follows. ➢ No Intent to Return If the individual does not intend to return to the home in which the life estate was purchased, the value of the life estate is an asset, see Section 5.5. When the individual has no intent to return due to domestic abuse, the life estate continues to be excluded until the individual establishes a new principal place of residence or otherwise takes action rendering the life estate no longer excludable. ➢ Intent to Return The purchase of a life estate may be excluded as homestead property if the individual intends to return to the home and the individual resided in the home for at least one year after the purchase. 24.8.2.E Transfer to Purchase an Annuity An annuity that is revocable or assignable is considered to be a countable asset. See Section 5.5.2 for more information on treating annuities as an asset.