OAR 461-135-0845: Valuation of Life Estate, Reversionary Interest, and Property

(1) In this rule, “spouse” or “spouses”: (a) For federally-funded programs, has the meaning defined in OAR 461-001-0000, (b) For programs not federally-funded, has the meaning defined in OAR 461-001-0000 but also includes a registered domestic partner (see OAR 461-135-0832). (2) Effective July 18, 1995, the value (see OAR 461-135-0832) of a life estate (see OAR 461-135-0832) or other interest (see OAR 461-135-0832) in real property (see OAR 461-135-0832) , personal property (see OAR 461-135-0832) , or other assets (see OAR 461-135-0832) measured by or valued with respect to a life span, including that of the relevant recipient of assistance (see OAR 461-135-0832), is established by reference to the life estate valuation tables in this section and is valued as of the time of death (see OAR 461-135-0832) of the recipient of assistance irrespective of the actual life span of the measuring life. [Table not included. See ED. NOTE.] (3) Excluding accounts under section (4) of this rule or property under section (6) of this rule, for assistance recovery purposes, the interest of a person (see OAR 461-135-0832) in real property, personal property, or other assets held in joint tenancy (see OAR 461-135-0832) (including transfers with right of survivorship covered by ORS 93.180), tenancy in common (see OAR 461-135-0832), or other form of concurrent ownership with one or more other persons with right of survivorship (see OAR 461-135-0832), other than a spouse , is presumed to be the fractional share held by the person . The fractional share of a person is presumed to be the share reflected in the ownership documents (see OAR 461-135-0832). Such presumption may be rebutted under the consideration furnished test (see OAR 461-135-0832) using convincing evidence (see OAR 461-135-0832) of the actual consideration contributed by another co-owner of the property or assets . In the absence of any stated fractional share on the ownership documents , each co-owner is presumed to have an equal fractional share of ownership of the whole, unless rebutted by the consideration furnished test using convincing evidence . (4) For medical assistance (see OAR 461-135-0832) recovery purposes, the interest of a recipient in multi-party accounts with an insured institution or credit union is presumed to be one-hundred percent, and the account’s value shall be determined at time of death . The presumption may be rebutted by the consideration furnished test using convincing evidence. (5) With respect to real property, personal property, or assets held jointly by spouses , as tenants in common, tenants by the entirety, or other concurrent ownership, the interest of a person in such property or assets is conclusively deemed to be one-half; provided, however, that in the event the ownership documents expressly set forth a different fractional share of ownership, and such fractional share is lawful in the appropriate jurisdiction, then the interest of a person is presumed to be the fractional share set forth in such ownership documents . Such presumption may be rebutted using convincing evidence . The consideration furnished test does not apply to this section of the rule. (6) With respect to real property, personal property, or other assets conveyed by a transfer on death deed or other similar arrangement, including, but not limited to, payable on death accounts with financial institutions; the interest of the transferor is presumed to be one-hundred percent, except that if there is more than one transferor their respective interests are determined in accordance with sections (3), (4), and (5) of this rule. (7) The value of real property is determined by establishing the value of the property to the satisfaction of the department (see OAR 461-135-0832). The burden of proof for establishing the value of the real property to the satisfaction of the department lies with the person or, after the time of death of the person , with the person's representative, and may be established by any methodology, including an appraisal performed by an appraiser certified or licensed in the applicable jurisdiction, that the department determines most accurately reflects the value of the real property . The sum of liens or other encumbrances, if any, attached to the real property established using convincing evidence, is subtracted from the value of the real property to determine a net value of the real property . (8) The value of personal property consisting of shares of stock or other securities traded on an exchange is evidenced by the average of the bid and ask prices. If such bid and ask prices are unavailable for certain stocks or securities, the value may be established by a written estimate from the corporation or other entity issuing such shares or securities of the value , or if such estimate is unobtainable, an estimate from a broker, trader or other person with knowledge in the field. The sum of liens or other encumbrances established using convincing evidence, is subtracted from the value of such stock or securities to determine a net value of the personal property consisting of stock or other securities. (9) Subject to section (8) of this rule, the value of tangible personal property , including, but not limited to, livestock, furniture, vehicles and other tangible items may be established: (a) By a written estimate from a person knowledgeable in the field of appraising such items of personal property ; or (b) From published sources such as catalogs of antiques or collectibles, blue books or other convincing evidence that accurately establishes the value of the property. (10) The sum of liens or other encumbrances, if any, attached to such property in section (9) , established using convincing evidence , is subtracted from the value of the tangible personal property to determine a net value of the tangible personal property . (11) The value of intangible personal property not otherwise provided for in this rule, is established by a written estimate from a person knowledgeable in the field of appraising such items of intangible personal property . The sum of liens or other encumbrances, if any, attached to such property , established using convincing evidence , is subtracted from the value of the intangible personal property to determine a net value of the intangible personal property . (12) Notwithstanding anything to the contrary in this rule, any real property, personal property, or other assets in a probate estate is valued in accordance with the probate code of the jurisdiction of the probate proceeding. (13) Notwithstanding anything to the contrary in this rule, if a claim under OAR 461-135-0835 is deferred until a recipient’s spouse dies; the value of any real property , personal property or other assets , subject to the deferred claim, is established as follows: (a) For real property , personal property, or other assets in the probate estate of the deceased spouse; the value is the current value at the time of probate; or (b) For real property , personal property, or other assets not in the probate estate of the deceased spouse ; the value is determined on the later of the date of the claim or the sale of the real property, personal property, or other assets. (14) The amount of a claim of the department that is recoverable from a person other than the recipient of assistance is calculated through the following steps: (a) Step One: Determine the value of the real property , personal property , or other assets received by the person from the recipient of assistance . (b) Step Two: Deduct from the value the amount of any liens or encumbrances. (c) Step Three: Multiply the result by the fraction or percentage that constitutes the interest received from the recipient of assistance . [ED. NOTE: To view attachments referenced in rule text, click here to view rule.]