Amendment #20 to H4789

The fair treatment of life estates in MassHealth eligibility

Mr. Murray of Milford moves to amend the bill by adding the following section:

SECTION XXX:

SECTION 1. Section 28 of chapter 118E of the general laws is hereby amended by adding at the end thereof the following:-

“In determining the eligibility of an individual who has disposed of a life estate or remainder interest in property, the Division shall determine the percentage interest of such life estate or remainder interest in accordance with federal internal revenue service regulations governing the valuation of annuities, interests for life or term of years, and remainder or reversionary interests.”

 SECTION 2. Section 31 of said chapter 118E is hereby amended in subsection (d) by inserting after the word “sold.” the following:-

“If the property against which the division has a lien or encumbrance is a life estate or remainder interest, the percentage interest against which the division may recover upon a sale shall be determined in accordance with federal internal revenue service regulations governing the valuation of annuities, interests for life or term of years, and remainder or reversionary interests."