MA902

Verify the amount used to purchase the life estate in another person’s home.

Determine if the person that bought the life estate has lived in the home for 12 months consecutive months after the date of purchase:

• If NO, STOP. The amount used to purchase the life estate is an uncompensated transfer.

• If YES, continue to Step 3.

Verify the equity value of the other person’s home.

Using the Life Estate and Remainder Interest Table from socialsecurity.gov, find the number in the Life Estate column line for the customer’s current age.

Multiply the number from the Life Estate column by the equity value of the property to get the Life Estate Value.

Subtract the Life Estate Value from Step 5 from the amount the person paid to purchase the life estate.

• If the result is zero or less, STOP.  There is no uncompensated value.

• If the result is greater than zero, the remainder is the uncompensated value.