A “life estate” is when the person only has the right to have possession, use, occupancy, and receive the income from the property during his natural life, and his interest ceases at his death. He cannot sell the property but can sell or mortgage his “life” interest. In some cases, it may be conditional: e.g., for life or until remarriage. Life estates are not counted for any programs applying the OAA, PTD, or AB criteria under 13 CSR 40-2.030(8).
For more information on life estates, refer to 1030.040.00 Distribution of Estate of Deceased Person, 1040.020.25 Transfer to Establish Eligibility, and Appendix A – Determination of the Value of a Life Estate or Dower Interest of the December 1973 manual.