3.3.25 Life estates

MDV 187317 (07/02/2018)
Life estate holder did not divest by paying share of mortgage, closing costs

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, 3.3.25.3 Life estate—termination and payment of less than FMV, ALJ Nicole Bjork

DHA Case No. MDV 187317 (Wis. Div. Hearings and Appeals Jul. 2, 2018) (DHS) ↓ Download PDF Aperson who terminates her life interest in a property without receiving the value of the life estate has divested. In this case, the petitioner reserved her life estate before the look-back period but also signed a deferred loan […] Read more

MDV 139111 (05/04/2012)
Termination of life estate was divestment, not done exclusively for purpose other than to qualify

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.06 Transfers made for purpose other than to qualify for Medicaid, 3.3.25 Life estates, 3.3.25.3 Life estate—termination and payment of less than FMV, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Michael D. O’Brien

DHA Case No. MDV 139111 (Wis. Div. Hearings and Appeals May 4, 2012) (DHS) ↓ Download PDF A person who terminates her life interest in a property without receiving the value of the life estate has divested. In this case, the petitioner had executed an agreement that allowed her children to terminate her life estate […] Read more

MDV 135429 (11/09/2011)
Life estate valued under IRC was less than FMV

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.06 Transfers made for purpose other than to qualify for Medicaid, 3.3.25 Life estates, 3.3.25.3 Life estate—termination and payment of less than FMV, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, 5.05.1 Family Care, ALJ Brian C. Schneider

DHA Case No. MDV 135429 (Wis. Div. Hearings and Appeals Nov. 9, 2011) (DHS) ↓ Download PDF It is generally a divestment if a life estate holder is not paid fair market value when the property is sold. In this case, the petitioner and her family sold her property through a real estate lawyer, who […] Read more

MDV 47/87892 (01/07/2008)
Life estate ended upon admission to nursing home, was a divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Michael D. O’Brien

DHA Case No. MDV 47/87892 (Wis. Div. Hearings and Appeals Jan. 7, 2008) (DHS) ↓ Download PDF The transfer of a life estate without receiving fair market value in return is a divestment. In this case, the petitioner had transferred her property to her son but retained a right to occupy her property that terminated […] Read more

MDV 38/87937 (03/26/2008)
Life estate holder divested by paving a dirt driveway

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.15 Trusts, 3.3.15.1 Trusts for disabled individuals, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Joseph A. Nowick

DHA Case No. MDV 38/87937 (Wis. Div. of Hearings and Appeals Mar. 26, 2008) (DHS) ↓ Download PDF The holder of a life estate must generally make reasonable and necessary repairs, and payments for those repairs are not divestments. In this case, the petitioner owned a life estate and paid for insulation, window repairs, light […] Read more

MDV 67/60174 (02/03/2004)
Life estate not transferred automatically upon admission to nursing home

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, 3.3.25.3 Life estate—termination and payment of less than FMV, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Peter D. Kafkas

DHA Case No. MDV 67/60174 (Wis. Div. Hearings and Appeals Feb. 3, 2004) (DHS) ↓ Download PDF A divestment is a transfer of assets for less than fair market value. In this case, the petitioner had a life estate in her home. The life estate was created before the look-back period and the petitioner did […] Read more

MDV 40/39925 (07/20/1999)
Life estate value must be considered in calculating divested amount

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Kenneth D. Duren

DHA Case No. MDV 40/39925 (Wis. Div. Hearings and Appeals Jul. 20, 1999) (DHS) ↓ Download PDF When an individual transfers real estate but retains a life estate, the value of the life estate must be considered in determining the divested amount. In this case, the petitioner transferred her home with a fair market value […] Read more

MDV 40/18587 (12/16/1997)
Life estate holder did not divest by paying for property repairs

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.07 Payments to relatives, 3.3.25 Life estates, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Nancy J. Gagnon

DHA Case No. MDV 40/18587 (Wis. Div. of Hearings and Appeals Dec. 16, 1997) (DHS) ↓ Download PDF In general, a transfer for fair market value is not a divestment. In this case, the petitioner spent $52,074 on repairs to his home, in which he had retained a life estate, after he was institutionalized. The […] Read more

MDV 214223 (11/27/2024)
Old irr. trust divestment imposed after renewal, benefits not continued pending appeal

Tags: 1 Applications and Renewals, 1.2 Renewals, 3 Financial Eligibility, 3.3 Divestment, 3.3.01 Penalty period, 3.3.05 Ownership returned; cure, 3.3.15 Trusts, 3.3.15.4 Irrevocable trusts—created during or after look back, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, 3.3.25.4 Life estate—divestment by remainder person, 4 Program Administration, 4.7 Notices & fair hearings, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ Kelly Cochrane

DHA Case No. MDV 214223 (Wis. Div. Hearings and Appeals Nov. 27, 2024) (DHS) ↓ Download PDF A divestment penalty is generally imposed when an applicant reports a divestment and would be otherwise eligible. In this case, the petitioner originally applied in 2020 after creating an irrevocable trust, but no divestment penalty was imposed because […] Read more

MDV 13/84361 (05/21/2007)
Purchase of life estate in daughter’s home was for FMV

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.25 Life estates, 3.3.25.5 Purchase of life estate in another’s home, 4 Program Administration, 4.7 Notices & fair hearings, ALJ Kenneth D. Duren

DHA Case No. MDV 13/84361 (Wis. Div. Hearings and Appeals May 21, 2007) (DHS) ↓ Download PDF The purchase of a life estate in another person’s home is a divestment if the payment exceeds the value of the life estate. In this case, the petitioner was an elderly woman who moved into her daughter’s home. […] Read more

MDV 211510 (04/05/2024)
Termination of life estate at first death of spouses was not a divestment

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, 3.3.25.3 Life estate—termination and payment of less than FMV, ALJ John P. Tedesco

DHA Case No. MDV 211510 (Wis. Div. of Hearings and Appeals April 5, 2024) (DHS) ↓ Download PDF DHA Case No. MGE 211214 (Wis. Div. of Hearings and Appeals April 5, 2024) (DHS) ↓ Download PDF Generally, the transfer of a life estate without receiving fair market value in return is a divestment. In this […] Read more

MDV 209376 (10/27/2023)
Agency conceded multiple errors, ALJ remands for it to finish its determinations

Tags: 1 Applications and Renewals, 1.1 Applications, 1.1.5 Begin dates, 3 Financial Eligibility, 3.2 Assets, 3.2.8 Business property, 3.3 Divestment, 3.3.04 Transfers of exempt income or assets, 3.3.12 Homestead property, 3.3.25 Life estates, ALJ Peter McCombs

DHA Case No. MDV 209376 (Wis. Div. of Hearings and Appeals October 27, 2023) (DHS) ↓ Download PDF Institutional MA eligibility can be backdated up to three months prior to the the month of application. In this case, the petitioner requested an asset assessment in January 2023 but didn’t apply until May. ALJ Peter McCombs […] Read more

FCP 177944 (12/13/2016)
Closing costs deducted from divestment amount

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.25 Life estates, 3.3.25.3 Life estate—termination and payment of less than FMV, 5 Subprograms, 5.05 Home and Community-Based Waivers Long-Term Care, 5.05.1 Family Care, ALJ Michael D. O’Brien

DHA Case No. FCP 177944 (Wis. Div. of Hearings and Appeals December 13, 2016) (DHS) ↓ Download PDF It is a divestment when a life estate is terminated and the life estate holder is not paid her proportional share. In this case, the petitioner’s life estate was divested when she sold her home and her […] Read more

MDV 183502 (12/06/2017)
No divestment for paying realtor fee

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, 5 Subprograms, 5.04 Institutional Long-Term Care, ALJ John P. Tedesco

DHA Case No. MDV 183502 (Wis. Div. of Hearings and Appeals December 6, 2017) (DHS) ↓ Download PDF Adivestment occurs upon the transfer of a non-exempt resource for less than fair market value. In this simple case, the petitioner sold the home in which she had a life estate and paid a prorated portion of […] Read more

MDV 199054 (08/25/2020)
No divestment: home sold for less than assessed value, petitioner paid closing costs

Tags: 3 Financial Eligibility, 3.3 Divestment, 3.3.03 Transfers for FMV, 3.3.25 Life estates, 3.3.25.1 Life estate—transfer of property for less than FMV, ALJ Debra Bursinger

DHA Case No. MDV 199054 (Wis. Div. of Hearings and Appeals August 25, 2020) (DHS) ↓ Download PDF A divestment occurs upon the transfer of a non-exempt resource for less than fair market value. In this case, the petitioner sold the home in which she had a life estate for $3,200 less than the tax […] Read more

Tag: 3.3.25 Life estates