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Effective: January 1, 2007 |
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19.25.15.05ar2 - Homestead Real Property (Archive) |
Archived: December 1, 2008 |
This section provides policy detail regarding homestead real property.
MinnesotaCare (MCRE), MA Method A and GHO.
Long-Term Care Facility (LTCF).
The homestead is defined as, ”r;the home which is owned by and is the usual residence of the client along with all the surrounding land and any buildings on that land, provided the land is not separated from the home by any property owned by others. The shelter can be real or personal property.”
Note: Public rights-of-way which separate property from the home do not affect the exclusion.
Example:
Buddy lives in a mobile home which he owns. He rents a spot in a mobile home park and his mobile home is not attached to the foundation.
Action:
Buddy’s mobile home is not real property, but it is his homestead.
Example:
Demetrius owns and lives in his house in Big City, MN.
Action:
The house and the lot it is on are his homestead.
Example:
Joan owns and lives in a farmhouse that is across the highway from the 40 acres of land that she farms. The barn and silo are located on the 40 acres.
Action:
The farmhouse and the 40 acres of land, barn and silo are considered the homestead, because the 40 acres are separated by a public right-of-way.
Example:
Luis owns and lives in a farmhouse that is on 40 acres of land which he farms. He also owns and farms 100 acres of land that is on the other side of his neighbor’s property.
Action:
The farmhouse and the 40 acres are the homestead. The other 100 acres are non-homestead real property.
MinnesotaCare, MA Method A and GHO
Exclude the homestead as an asset.
A homestead which is temporarily unoccupied may continue to be excluded if the client intends to return to the home and it is unoccupied for either of the following reasons:
l Due to employment, illness, or an employability plan approved by the county human service agency which includes education, training, or job search within the state, but outside the immediate geographic area.
l Because it is not habitable due to casualty or natural disaster. Exclude the homestead during periods it is unoccupied only if the applicant or enrollee intends to return.
Exclude the home owned and occupied by a client, or by a client’s spouse, or the client’s disabled or dependent child. Whether a client is in a long-term care facility (LTCF) or not determines how this exclusion is applied.
The following factors must all be met for a client, who is living in the community, to have the home be excluded:
l The client, or dependent relatives, reside in the home and considers it his or her principal home.
l The client has an ownership interest in the home.
l In situations where the client is absent from the home, he or she intends to return to it.
Example:
LaVonda owns a home in Greater City, MN but is currently staying in the Twin Cities during the week to finish her Masters in Astrophysics. Her mother and 17 year old daughter are also living in the home. She intends to return to Greater City, MN and her home when the school year ends.
Action:
LaVonda’s home is excluded as her homestead because she is the owner, intends to return to the home and her dependent child is living in it.
Long-Term Care Facility (LTCF) Residents
For clients residing in a LTCF, exclude the homestead using the criteria that will extend over the longest time period:
Note: If the property does not meet any of the criteria review it as Non-homestead Real Property.
l If the client is expected to remain in the LTCF permanently, exclude the homestead from the asset limit for the first six calendar months the client resides in the LTCF.
n Begin the exclusion in the first full calendar month after entering the LTCF. If the person entered the LTCF directly from a hospital, include the hospital stay when determining the months of exclusion.
Note: Give written notice to the client, no later than last day of the fifth month of placement, that the value of the homestead will be counted in the client’s total counted assets when the six-month exclusion ends.
n Exclude the homestead in the initial partial month of LTCF residence.
Example:
Ted was admitted to the hospital on June 15. On July 3 he was admitted to a nursing home for a permanent stay.
Action:
Exclude his homestead for June and for the next six months beginning with July, the first full month of institutionalization.
l If the LTCF resident intends to return home and can reasonably be expected to return home exclude the homestead for as long as he or she fits this criterion.
n Request a written statement of the client's intent to return home and whether the client can reasonably expect to return home.
n If the client's intent contradicts the information about the anticipated length of stay on the Physician's Certification Statement (DHS-1503) or the client’s health or condition, get:
m A doctor's statement saying when the person can reasonably be expected to return to the home.
m Document that MA or other sources will meet the cost of care upon the client's return home.
q This could include eligibility for MA home care, Elderly Waiver, Community Alternatives for Disabled Individuals, or Alternative Care.
q A client’s written statement of how their needs will be met if none of the programs listed are available, is also acceptable.
m Check with the Long Term Care Consultation team in the county where the client's homestead property is located of the availability of appropriate home care services. Documentation is not required but the information should be documented in case notes.
Example:
Betty entered an LTCF on October 16 after she broke her hip. Her home was excluded through the following April. (the first six full months of institutionalization). The DHS-1503 indicates an anticipated discharge date of August 1. Betty has made arrangements with a niece to help with cleaning and yard work when she returns home.
Action:
The homestead is excluded for October as it is the initial partial month of LTCF residency. It will also be excluded for November through April because it is the first six months of institutionalization. The exclusion will continue to be excluded because Betty intends to return to the home, and the DHS-1503 confirms that she can be expected to return to the home. Review the exclusion in August.
l For as long as it is the residence of one or more of the following relatives of the LTCF resident:
n Spouse.
n Child under 21.
n Disabled child of any age.
The child can become disabled at any age, for this exclusion. Use the MA definition of disability. See MA Basis: Disability and Disability Determinations.
Example:
Horace, age 80, resides in a LTCF. His daughter Louella had a heart attack and became unable to work at age 55. She receives RSDI disability payments and lives in Horace’s home.
Action:
The homestead will be excluded for as long as Louella lives there because she is a disabled child of Horace’s.
n Sibling.
To qualify for this exclusion the sibling must have lived in the home for at least one year immediately before the date of the client's admission to the LTCF and must have an equity interest in the home.
Example:
Emma and her sister Esther purchased a home together after they were both widowed. Emma contributed $40,000 toward the purchase of the home and Esther contributed $10,000. Four years after they purchased the home, Esther entered an LTCF and applied for MA. Her stay is expected to be permanent.
Action:
The homestead will be excluded for Esther because Emma lived there for more than one year before Esther entered the LTCF and has an equity interest in the home. Continue to exclude the homestead as long as Emma continues to live in the home and has an equity interest in it.
n Child over 21 or grandchild. To qualify for this exclusion the child or grandchild must meet both of the following:
m Lived in the home for at least two years immediately before the date of the client's admission to the LTCF.
m Provided verifiable care to the client to permit the client to live at home instead of in an LTCF. Require a physician’s statement to verify that the adult child or grandchild provided such care.
Example:
Georgette enters a LTCF from the home she shared with her adult daughter, Carol. Georgette is expected to remain in the LTCF permanently. Carol has lived in the home all her life but does not have an ownership interest. Carol states she took over most of the household responsibilities and expenses when her mother became unable to care for herself.
Action:
Request a physician’s statement to confirm that Carol was needed in the home to care for Georgette. Exclude the homestead beyond the first six months of LTCF residence if the doctor verifies that Carol provided care that allowed Georgette to remain at home. Carol must continue to live in the home to maintain the exclusion.
Certain applicants and enrollees receiving MA payment of long-term care (LTC) services also have a limit on the amount of equity they have in their home. See LTC/EW Home Equity Limit for more information.