Amendment ID: S2889-23

Amendment 23

Consistent Treatment of Life Estates

Ms. Rausch moves that the proposed new text be amended in section 17 by inserting at the end thereof the following paragraph:-

"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."; and

By adding the following new section:- 

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