S.D. Admin. R. 67:46:05:08.01
Purchase of a life estate interest in another individual's home is considered a transfer of an asset for less than fair market value unless the purchaser resides in the home for a period of at least 12 consecutive months after the date of the purchase. For purposes of determining the period of ineligibility under § 67:46:05:09, the value of the interest in the life estate is the purchase price of the life estate.
If the purchaser resides in the home for 12 consecutive months or more, the department shall determine whether the life estate interest was purchased for fair market value. If the department determines that the life estate interest was purchased for an amount greater than fair market value, the purchase is considered a transfer of an asset for purposes of establishing eligibility and shall apply the provisions of § 67:46:05:06. If the department determines the purchase of the life estate interest was for fair market value or less and the individual or the individual's spouse or child who is either under age 21 or is blind or permanently and totally disabled is no long living in the home, the department shall count the current value of the life estate as a resource countable toward the resource limit established in § 67:46:05:30. If the department determines the purchase of the life estate interest was for fair market value or less and the individual or the individual's spouse or child who is either under age 21 or is blind or permanently and totally disabled continues to live in the home, the home is considered home property according to § 67:46:05:15.
The department counts the value of a life estate as a resource countable toward the resource limit established in § 67:46:05:30, unless the life estate is considered home property according to § 67:46:05:15.
S.D. Admin. R. 67:46:05:08.01
General Authority: SDCL 28-6-1.
Law Implemented: SDCL 28-6-1.
Inclusion of transfers to purchase life estates, 42 U.S.C. § 1396 p(c)(1)(J). Life estate value, § 67:46:05:08.