WAC 182-516-0300 Life estates
Effective March 2, 2018
- "Life estate" means an ownership interest in real property only during the lifetime of a specified person.
- Subject to subsection (3) of this section, a life estate is an available resource, unless it is either excluded or unavailable under chapter 182-512 WAC.
- For someone applying for or receiving long-term services and supports, a life estate interest is subject to the home equity limits under:
- For clients of institutional or HCB waiver services:
- If the remainder interest was transferred for less than fair market value, the medicaid agency or the agency's designee will evaluate the transaction as an asset transfer under WAC 182-513-1363. "Remainder interest" is the fair market value of the property at the time the client transferred it and retained a life estate, minus the value of the life estate at the time of that transfer.
- If a client purchased a life estate but has not lived in the property for at least one year after the purchase, the purchase price of the life estate is an uncompensated asset transfer under WAC 182-513-1363.
- If a client purchased a life estate and has lived in the property for more than one year, it is not an uncompensated transfer, unless the purchase price for the life estate exceeded the value of the life estate. Any amount paid for a life estate in excess of the value of the life estate is an uncompensated transfer under WAC 182-513-1363.
- To calculate the value of a life estate:
- Identify the person whose life determines the length of the life estate;
- Identify whether uncompensated value or home equity is being calculated:
- If calculating uncompensated value under subsection (4)(a) or (c) of this section, identify that person's age on the person's last birthday before the transfer; or
- If determining whether home equity requirements are met un der subsection (3) of this section, identify that person's age on the person's most recent birthday; and
- Multiply the property's fair market value by the life estate factor corresponding to that person's age in the Life Estate and Remainder Interest Tables maintained by the Social Security Administration.
- To calculate the remainder interest, subtract the value in subsection (5) of this section from the property's fair market value at the time of the transaction that created the life estate.