1. (a) In determining the equity value, i.e., current market value less encumbrances, of real excess property, the type of ownership, the number of additional owners, and the individual’s actual ownership interest must all be taken into consideration.
2. (b) Fee simple ownership (sole ownership). If the individual is the sole owner of excess property and has the right to dispose of it, the equity value of the property is a countable resource.

3. (c) Shared ownership.

   1. (1) If the excess property is jointly owned by two (2) or more individuals, the equity value of the property is charged to the individual in proportion to his or her ownership interest.

   2. (2)

      1. (A) In joint tenancy, the property’s equity value is divided by the number of owners in proportion to the ownership interest.
      2. (B) When the individual’s ownership interest plus other countable resources exceed the resource limit, determine if the individual is free to sell his or her interest.
      3. (C) If the other owners will not consent to selling the property, then the property will not be considered a countable resource.
      4. (D) If they will sell, the property will be counted.

   3. (3)

      1. (A) In tenancy in common, the property’s equity value is divided by the number of owners in proportion to the ownership interest of each to determine the individual’s ownership interest.
      2. (B) The value of the individual’s interest will be considered a countable resource, regardless of the other owners’ desire to sell.

   4. (4)

      1. (A) In tenancy by the entirety, the property’s equity value is divided by one-half (1/2) to determine the individual’s ownership interest.
      2. (B) If the individual’s spouse is willing to sell the property, then it will be considered a countable resource.
      3. (C) If the spouse will not sell, then the property is not considered.

4. (c) Life estate or remainder interest in nonhome property.

   1. (1) The values must be determined in accordance with state law and state actuary tables.
   2. (2) The county will determine the value of the property in which the person has the life estate/remainder interest and route all the information to the Central Office for a determination on the value of the interest.
   3. (3) A memorandum from the ES Supervisor and all information gathered will be sent to the Office of Program Planning and Development, Slot S333.

5. (d) Ownership interest held in unprobated estate.

   1. (1)

      1. (A) An individual’s ownership interest in an unprobated estate is considered to be a resource.
      2. (B) Ownership interest is determined by dividing the equity value of the property by the number of heirs.

   2. (2)

      1. (A) The costs of settling the estate, including funeral expenses, payment of mortgages and other debts, attorney fees, etc., will be deducted from the value of the whole estate before determining the individual net interest.
      2. (B) A knowledgeable source estimate of these costs may be used in making the determination if the actual costs are not known.
   3. (3) Once probate proceedings are initiated, the property will be considered inaccessible until probate is completed.

6. (e) Rights to use.

   1. (1) Mineral rights, timber rights, easements, or leaseholds may all be countable resources if they have a cash value available to the individual.
   2. (2) However, in many cases, none of the above are salable and, therefore, would not be countable.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: “07/01/97”