Current through Register Vol. 24-06, March 15, 2024
(1) "Life
estate" means an ownership interest in real property only during the lifetime
of a specified person.
(2) 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.
(3) For someone applying for
or receiving long-term services and supports, a life estate interest is subject
to the home equity limits under:
(a) WAC
182-513-1350
for institutional and home and community-based (HCB) waiver programs;
and
(b) WAC
182-513-1215
for community first choice.
(4) For clients of institutional or HCB
waiver services:
(a) 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.
(b) 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.
(c) 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.
(5) To calculate the value of a life estate:
(a) Identify the person whose life determines
the length of the life estate;
(b)
Identify whether uncompensated value or home equity is being calculated:
(i) 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
(ii) If determining whether home equity
requirements are met under subsection (3) of this section, identify that
person's age on the person's most recent birthday; and
(c) 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.
(6) 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.
WSR 13-01-017, recodified as §
182-516-0300, filed 12/7/12,
effective 1/1/13. Statutory Authority:
RCW
34.05.353(2)(d),
74.08.090, and chapters 74.09,
74.04 RCW. WSR 08-11-047, §
388-561-0300, filed 5/15/08, effective 6/15/08. Statutory Authority:
RCW
74.04.050,
74.08.090, and
74.09.500. WSR 01-06-043, §
388-561-0300, filed 3/5/01, effective
5/1/01.
