Principal Residence

A client’s home, interest in a home or life estate, will continue to be exempt if any of the following circumstances exists:

Intent to return
Sibling or child over age 21 in home
List and lien property exemption

Intent to Return

During any absence, a principal residence is exempt based on a person’s attested intent to return. Verification of the individual’s intent to return to the principal residence must not be required unless the individual or his/her authorized representative requests the income deduction for upkeep and repair of the home.

Note: Intent to return must be explored at annual redetermination.

Sibling or Child Over Age 21 in Home

An LTC individual’s principle residence is still exempt if they are not expected to return as long as his/her sibling or child over age 21 are living in the home AND have done so for at least one year prior to the time the applicant/recipient entered the facility.

Verification required includes but is not limited to:

Mail addressed to the sibling or child at the principal residence address.
Canceled personal checks from the account of the sibling or child showing the residence address and a date at least one year prior to the date of admission.

Note: For the purpose of exempting the principal residence, it is not necessary for the sibling/child over 21 years of age to have made contributions to the LTC individual’s personal needs.

List and Lien Property Exemption

If during any LTC absence, the applicant/recipient does not intend to return, and no specified relative resides in the residence, but a verified effort is being made to sell the property at Fair Market Value, and a lien has been filed by the County to recover the cost of medical services paid for the MC, it is exempt.

Progress of the sale must be checked quarterly.

When an LTC individual has an interest in a principal residence which must be listed for sale, or, which the client chooses to list for sale, the EW must send an MC 239 Y. This NOA tells the client that:

In order for MC to be established or continued, the property must be listed for sale at its fair market value with a licensed real estate broker, and
A copy of the listing contract from the real estate agent and a copy of a written appraisal from a qualified real estate appraiser must be provided by the applicant/recipient and
Verification of this listing and appraisal must be received within 30 days of the date of the NOA, and
A lien will be recorded against the property to recover the cost of medical care received under the MC program while in LTC, and
The client has a right to a County Legal Review (CLR) and/or a State Hearing.

Note: Fair Market Value means the price an item would sell for, in the open market, in the particular geographic area it is located. Market value is the same as the assessed value, and is not the same as the Fair Market Value.

List and Lien Requirements

If during any LTC absence or upon discharged from the LTC facility, the client does not intend to return and no specified relative resides in the residence, the property must be listed for sale at Fair Market Value AND a lien recorded.

Exception: Clients with homes whose market value is less than $6,000 must be offered the choice of listing the property for sale or meeting utilization requirements. Applicants/recipients with property whose market value is more than $6,000 must list the property for sale and provide a copy of the deed.

Transfer of Nonexempt Principal Residence by Institutionalized Persons

A non-exempt principal residence can be transferred from an Institutionalized Spouse to the following persons without determining a POI:

The Community Spouse.