Applying the Limit Example

Angela is requesting MA payment of LTC services. Angela resides in the home she owns equally with her sister, Kim. Angela verifies the home has an FMV of $1,200,000. They have a $200,000 outstanding mortgage on the home.

Action:

Conclude that Angela has satisfied the home equity limit. The equity value in the home is one million dollars, which is equally split between the sisters. Each sister has $500,000 of equity in the home.