Transfer Penalty

Assessment of transfer penalty on sale of life estate affirmed

Assessment of transfer penalty on sale of life estate affirmed. Conservators sold life estate for $1,500, then sold the applicant’s home for $55,000 after putting $13,397 into repairing the home. A transfer of resource penalty was assessed because the life estate interest was .58914 percent of the home value, which is well below $1,500. On appeal, assessment of the penalty was affirmed, but the penalty was recalculated to deduct the $13,397 paid by the conservators.

OSAH-Franklin-Gatto-12-2008.pdf (December 15, 2008).

A transfer of a life estate “is for less than fair market value whenever the value of the transferred asset is greater than the value of the rights conferred by the life estate.” Centers for Medicare & Medicaid Services, State Medicaid Manual § 3258.9 (emphasis added).

Published by
David McGuffey

Recent Posts

Social Security Disability versus Veteran’s Disability

The word disability doesn't have the same meaning in all contexts. If you have a…

19 hours ago

Social Security Announces 2.5 Percent Benefit Increase for 2025

On October 10, 2024, the Social Security Administration announced that Americans will increase a 2.5…

4 weeks ago

Getting Organized

Many people think that estate planning is just having documents prepared. They have a lawyer…

4 weeks ago

Beneficiary who accepted inheritance under Will could not bring action for tortious interference

In Chambers v. Edwards, 365 Ga. App. 482 (2022), William Chambers sued his sister, Kathy…

1 month ago

Medicaid’s payment of medical bills does not bar recovery from negligent party

When an injured party sues someone who negligently injured him or her, one form of…

1 month ago

Market Observations from David Hultstrom

From time to time we re-post David Hultstrom's Financial Foundations. Mr. Hultstrom, who is a…

1 month ago