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Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 29535
Experience:  Personal Investment, Tax Preparation
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If you live in nebraska & have a life estate since 2003 & go

Customer Question

If you live in nebraska & have a life estate since 2003 & go into a nursing home in south dakota & apply for medicaid in So.Dak. will they make you sell your life tenant interest in the house?
Submitted: 1 year ago.
Category: Finance
Expert:  Lev replied 1 year ago.
As long as the house is not sold, your life estate is NOT a countable asset for Medicaid purposes. However, if you choose to sell the property - you will be entitled to the part of proceeds apportioned to the value of the life estate interest.A life estate is a form of joint ownership of property. The value of the life estate is calculated based on your age.So - if the property is sold - a part of proceeds attributable to the life estate is countable asset for Medicaid application purposes.Questions?
Customer: replied 1 year ago.
Is this true for the state of South Dakota? Because medicaid is saying they don't honor life estates in South Dakota they want part of the life tenants share. The house is in Nebraska with me,my spouse, & my mom on the title at the court house.
Expert:  Lev replied 1 year ago.
They will not be able to force selling the property.However - because the life estate has a value - that value may be countable or not countable asset based on circumstances.If your mother is listed on the title as co-owner - and the property is NOT her primary residence - that is countable asset.If your mother is listed on the title as a life estate co-owner - and the property was transferred more than 5 years ago - she has to list that asset on her application - but the value is not countable.But if the property will be sold - proceeds attributable to the life estate is countable asset and will be remitted to Medicaid.Only if sold.Otherwise - they want to know about that asset - but will not force the sale.