Tenancy By The Entirety
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Real property consists of land and any attachments such as dwellings and other buildings. Property other than the home site may be a countable resource unless it can be excluded for one of the reasons in VII. Please review the following for definitions of types of ownership and property interest.
Most property owned by a husband and wife is held by them as tenants-by-the-entirety. If the conveyance of the property is made to the couple during the marriage, they hold the property as tenants-by-the-entirety even if it is not specifically stated in the deed.
If the couple divorces, the tenancy-by-the-entirety is dissolved and the former spouses become tenants-in-common of the property and either person can market his half-share. Legal separation does not dissolve tenancy-by-the-entirety. Tenancy-In-Common - Property owned jointly by two or more individuals who generally are not husband and wife. Property owned by 2 or more persons who generally are not married to one another or given to 2 or more persons by gift, will, or by intestate succession is held as tenancy-in-common.
These related or unrelated persons have an undivided fractional interest in the whole property for the duration of the tenancy. An individual owner may sell or give his individual interest in the property to another without the consent and participation of the other owners, and he may file suit with the court for partition of the property.
Though property owned jointly by husband and wife is owned by tenancy-by-entirety, a legally binding agreement can be made that creates tenancy-in-common between husband and wife. An individual may transfer his property to another and retain certain rights in the property, such as the right of possession and use of the property, the right to obtain profits from the property, and the right to sell his life estate interest for his lifetime.
Its duration is measured by the lifetime of the tenant or of another person, or by the occurrence of some specific event, such as remarriage of the tenant.
The contract establishing the life estate may restrain one or more rights of the individual. He does not have title to the property, and he does not have the right to sell the property. Upon the death or occurrence of a previously designated specific event of the life estate holder, the remainder interest holder "remainder man" will hold full title in fee simple.
An owner of real property may designate several individuals as remainder men who would hold ownership in common by will or agreement. The remainder man can generally sell his remainder interest in the property during the life estate holder's tenancy. The owner s who hold s a fee simple title to the property has no restrictions or limitations on that ownership. The owner s may sell or transfer the ownership interest without time conditions imposed by others.
A type of life estate interest once granted to a widow in her husband's real property. If questionable, consult with county attorney. A pledge, or security of a particular property, for the payment of a debt or the performance of some other obligation within a specified time. On real property usually called mortgage, land contract, deed of trust, or promissory note. On personal property known as, chattel mortgages. The home site remains excluded if the spouse or dependent relative is out of the home but intends to return.
If he is mentally competent, age and physical condition are not factors in evaluating intent. The time of return may be indefinite, and there is no time limit on this exclusion.
Income produced from a life estate is countable to the life estate holder regardless of who receives the income. Property that meets the home site exclusions in VII. Non-business property cannot be made income-producing for a period of time which has already passed if there was no prior arrangement. Real property that is excluded as the home See VII. The property is excluded if actively involved in a trade or business regardless of value and amount of profit. The property maybe excluded if used in trade or business when:.
Obtain a copy of the business tax return i. If the current tax return is not available, obtain a copy of the latest tax return or business records. There is no requirement that the property produce a certain rate of return. The equity of the acre and the tractor is excluded. Burial spaces include grave sites, crypts, mausoleums, urns, or other repositories customarily used for the remains of a deceased person.
Rights of use are tied to land or the natural resources of land and may have countable value separate from the land. TTPP allowed eligible quota owners and quota growers who apply for the program to receive annual installment payments over a 10 year period as compensation. The successor-in-interest option to sell to a family member was effective March 20, An individual could have multiple contracts if he owned quota or grew eligible tobacco in different counties.
Any cash payment received from entering into an assignment or successor-in interest contract with an approved financial institution by a tobacco quota grower or those who rent the land is considered net earned self-employment income for the year in which the assignment or contract was completed. Refer to MAIncome. Since each contract must meet the TTPP guidelines, the cash received is considered fair market value for the installment payments, and would not require an evaluation for a Transfer of Assets.
Refer to MATransfer of Assets, as a sanction may apply. Exclude the value of any property agreement which is not legally negotiable cannot be sold. This includes promissory notes, loan agreements, etc. An applicant lives in the home of his son. His son owns the house and lot. The applicant owns the lot next to his son. Refer to MATransfer of Assets. Count the value of the land if the allotment is not being used, unless it can be excluded another way. A property agreement usually a promissory note which can be sold is a countable resource.
Use the Resource Interview Guide, located at http: Search the following county records. Document the description and tax value of all property listed:. Calculate the value of all property which is not excluded from the resource determination process. For property that is not excluded, verify encumbrances by written or verbal statement of the creditor. Subtract encumbrances from the CMV of the countable property interest to arrive at countable equity.
Applicant owns two tracts of land which are mortgaged together. They are not contiguous to the home site. One tract consists of 5 acres used to produce goods and services for home consumption. The other tract is 10 uncleared acres that are not used in any way.
Determine the encumbrance on the countable acres by dividing the CMV of countable acres by total CMV of encumbered land and applying the resulting percentage to the total payoff amount:. The current market value of real property, based on its tax value See VII. Also follow these instructions for rebuttal of the current market value of a promissory note. Geographic area is the same area as covered by local radio, television, newspaper and other media.
The county must use its judgment as to whether or not a statement of lesser value is questionable. It must document in the record the reason for doubting the statement. The statement may be questionable if:. See MAVerification Requirements for Applications and MAProcessing the Application, for processing time frames and requirements for providing rebuttal evidence. Allow a beneficiary twelve calendar days to provide evidence to establish a lesser value. If at the end of the 12 calendar days, he has not provided the evidence, send a timely notice proposing termination for excess resources.
For questions or clarification on any of the policy contained in these manuals, please contact your local county office.
