Real Property Excess Value

When a client protects real property with a value in excess of the PAL, an MA Lien Worksheet (DHS-3203) must be filed on the excess portion. The DHS-3203 includes a line for you to record the value of the protected portion. More information about filing a lien can be found in the EPM.

Example:

Ouida is requesting MA payment of LTC services through the CADI waiver. She has received $100,000 in benefits from her Partnership policy. Ouida chooses to protect her home. It has a FMV of $120,000.

Action:

Apply $100,000 toward the PAL. The value of Ouida’s home is $20,000 over the PAL. The excess amount is excluded from Ouida’s asset total because her home in which she lives is an excluded asset. The excess amount is not protected during estate recovery. Submit an MA Lien Worksheet noting the value of the home that is protected.