Transfer of home property is not treated as a transfer of an excluded resource under MA905. Transferring ownership without full compensation may result in a penalty period.
When the customer or spouse transfers property to another individual but retains a life estate interest in the transferred asset, a transfer has occurred. The current market value of the life estate interest (See MA705T) is subtracted from the equity value of the property. The difference is the amount of uncompensated value.
NOTE The value of the customer’s life estate interest may be excluded as home property if the property is the customer’s principal residence.
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Term |
Definition |
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Life Estate |
A life estate is ownership by a right to the use of the property without title to the property (see MA705T). |
When real property has been transferred, the person must provide proof of:
The date of the transfer; and ownership before and after the transfer. Some examples of proof include the following:
Sales contracts;
Deeds;
Property titles.
Documentation to prove the Current Market Value (CMV) of the property. Primary proof of a property’s CMV is the assessed value from current tax bills or County Assessor records. If these assessments cannot be used or the customer disagrees with the assessment, current written estimates of the property’s CMV must be obtained from two knowledgeable sources.
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Program |
Legal Authorities |
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ALTCS |
42 USC 1396p(c)(1)(A) AAC R9-28-401 and 409 |