C Equitable Ownership

Revised 12/30/2019

Policy

A person may have an ownership interest in a resource even when he or she is not listed as an owner on the title or ownership document. This is described as having equitable ownership. Equitable ownership may affect a customer’s counted resources in either of the following situations:

• The customer holds the legal title, but claims that someone else really owns the resource through equitable ownership; or

• The customer does not hold legal title to a resource, but does have an equitable interest.

 

1) Customer holds legal title, but someone else has an equitable interest

The value of the other person’s equitable interest in the resource is not counted in the customer’s resource determination. The actual ownership interest for each person must be determined. See Equitable Ownership for an example.

 

2) Customer does not hold legal title, but does have an equitable interest

The value of a customer’s equitable ownership interest is considered in the resource determination. Common types of equitable ownership include the following:

• Ownership interest in an unprobated estate – This may occur when a person is an heir or relative of the deceased and receives income from the property or received rights to the property due to the death.

• Beneficiary of a trust - The beneficiary does not have legal title, but does have an equitable ownership interest in the assets held by the trust. See Chapter 800 for policies and procedures for trusts.

• Real Property – A person may gain an equitable ownership interest in real property by activities like making mortgage or property tax payments, building or paying for additions to or improvements on a structure.

 

Definitions

Term	Definition
Beneficiary	A person for whom a trust was created, and who receives the benefits of that trust.
Equitable ownership	An equitable ownership interest is a form of ownership or right of use that exists without legal title to the property. For example, a person regarded as the real owner because of his investment in the property, but the legal title is in someone else’s name has an equitable ownership interest in the property.

 

Proof

Proof of equitable ownership may vary depending on the reason for the equitable ownership and whether the customer or someone else has the ownership interest. See the following table for more details:

If the customer…	Proof includes…
Is the beneficiary of a trust	Depends on the trust type. See Chapter 800.
Has equitable ownership interest in an unprobated estate	Court documents; Copy of the deceased person’s will; Documents showing relationship to the deceased; Any other documents supporting the customer’s claim to the estate.
Has equitable ownership interest in real property	Receipts; Canceled checks; Written agreement with legal owner; Other documents showing the customers investment in the property.
Has legal title but claims someone else has an equitable ownership interest	Other person’s receipts, canceled checks or other documents showing the other person’s investment in the resource;and Written agreement between the parties; or A written statement from each person regarding their agreement and the amount of the person’s equitable ownership interest.

 

Legal Authority

Program	Legal Authority
ALTCS	42 U.S.C. 1382b 20 CFR 416.1201