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Wisconsin Department of Health and Family Services Medicaid Eligibility Handbook |
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Wisconsin Department of Health and Family Services Medicaid Eligibility Handbook |
Use the following process to determine a client's life estate/remainder
interest.
Go to the IRS web-site http://www.irs.gov/businesses/small/article/0,,id=112482,00.html .
Look up the (Section 7520) interest rate for the month and year you are making the valuation. Make a note of the interest rate listed.
For Example, the Section 7520 interest rate for October
2004 is 4.4%.
Go to the IRS web-site http://www.irs.gov/pub/irs-pdf/p1457.pdf
Refer to the IRS Actuarial S (pages 13-112). Locate the interest
rate for the month of valuation. ( The interest rate you looked
up in step 2)
Note: The Adobe search function may assist you in
finding the appropriate table. Type Table S in the search
field and choose the appropriate interest rate from the search results.
For Example the Appropriate table for the October 2004 interest rate, (4.4%) is found on page 24 of the PDF.
Find the applicable row for the age of the individual you are doing a valuation. Use the life estate/remainder interest listed in this row for the valuation.
This page last updated in Release Number: 05-01
Release Date: 01/11/05
Effective Date: 01/11/05
