Current through August, 2024
(a) The individual's interest in property
shall be determined by the type and form of ownership which may affect the
value of the property in determining eligibility.
(b) Property held in joint tenancy shall be
determined by:
(1) An appraisal of the
current fair market value of the individual's interest in the property;
or
(2) Dividing the current fair
market value of the property by the number of joint tenants; and
(3) Upon the death of one of the joint
tenants, the survivor or survivors become the sole owner or owners of the
entire interest.
(c)
Property held in tenancy by the entirety shall be determined by:
(1) An appraisal of the current fair market
value of the individual's interest in the property; and
(2) Dividing the current fair market value of
the property equally between the husband and wife.
(d) Property held by tenancy in common:
(1) Shall be determined by an appraisal of
the current fair market value based on the percentage of ownership of two or
more individual owners;
(2) Each
owner may sell, transfer or dispose of his or her share of the property without
the permission of the other owner or owners but cannot do so with respect to
the entire property; and
(3) There
is no automatic survivorship rights to a deceased's ownership interest as it
passes to his or her estate or heirs.
(e) Property under an agreement of sale shall
be allocated between the buyer and seller in accordance with their respective
interests as follows:
(1) The buyer's
interest shall be the fair market value of the real property minus the balance
due on the agreement of sale; and
(2) The seller's interest shall be the
balance on the agreement of sale.
(f) Property subject to a life estate
interest:
(1) Is established by a will or
deed which conveys property to a life estate owner or life tenant for life and
to one or more remaindermen upon termination of life estate;
(2) The current value of the property shall
be allocated between the life tenant and the remainderman by determining the
present worth of their respective interests using the Life Estate and Remainder
Interest Table (
26
C.F.R §20.2031-7 and 49 FR Vol. 49 No.
93/5-11-84), that corresponds to the age of the life tenant;
(3) The life tenant:
(A) Owns the physical property for the
duration of the life estate;
(B)
Has the right to possess, use, and obtain profits from the property;
(C) Can sell his or her life estate interest;
but
(D) Cannot take any action
concerning the interest of the remainderman.
(4) The remainderman:
(A) Has ownership interest in the physical
property;
(B) Does not have the
right to possess and use the property until termination of life estate;
and
(C) Unless restricted by will
or deed, is able to sell his or her interest in the physical property before
the life estate interest expires but the market value of the remainder interest
may be reduced as the sale is subject to life estate interest.
(g) The individual's
interest in real property shall not be considered available as an asset if a
co-owner would be affected by the sale of the individual's interest under the
following:
(1) The co-owner resides on the
property;
(2) The co-owner would
have to move if the property was sold; and
(3) The co-owner owns no other real property
that could be used as the co-owner's home property.
