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Manual Section |
ALTCS |
The customer and his wife own a life estate interest in property. The customer is residing in a Nursing Facility and his wife uses the life estate property as her principle place of residence. The value of the life estate is excluded as a Home Property because the customer’s spouse uses the life estate property as her home property.
The customer lived in an apartment for years, until he was placed in a nursing facility. After entering the nursing facility, he used $20,000 of his savings to buy a life estate interest in his son’s home.
Since the customer did not live in the son’s home before he was institutionalized, the life estate is not excluded as home property.
The customer was living in her daughter’s home, but had to enter a nursing facility. After entering the nursing facility, she used $19,000 of her savings to buy a life interest in her daughter’s home.
Even though the customer lived in the home before entering the nursing facility, the life estate is not excluded as home property because she did not have an ownership interest in her daughter’s home before she was institutionalized.
The customer sold his home under an installment contract. The contract has a principal balance of $75,000 as of July 1st. On July 10th the buyer makes a principal payment of $5,000 to the customer.
As of October 31st, the customer has used only $4,000 of the July payment in connection with purchasing of a new home. The unused $1,000 principal payment AND the remaining principle balance of the installment contract ($70,000) are counted as resources effective November 1st.
A customer’s home property is titled to a revocable trust. The current market value for the property is $309,000. The customer owes $135,500 on the home’s mortgage. $309,000-$135,500= $173,500. The countable equity value for the home property in the trust is $173,500.