317:35-5-41.1(b)(2)

Property that is not the primary residence, or adjacent to the primary residence, is a countable resource

At least 2 estimates of Fair Market Value (FMV) are needed to determine the property’s value

• Estimates are needed rather than a full appraisal
• The estimates must come from persons with professional knowledge of the value of real estate, such as a realtor, real estate broker or a bank’s loan officer. The value may also be taken from the county tax assessor’s office
• Can be written or oral
  • If oral, put in the case note who the estimate came from, their job, and their phone number
• Subtract the verified amount owed on any loans on the property from the property’s FMV

The value of mineral rights associated with the property are determined per this article: Mineral Interest Valuations – Ten Quick Tips

If the property makes the client over the resource standard, the property can be put up for sale. [317:35-5-41.10(a)]

The property is exempt while for sale

The exemption lasts no more than 90 days

An extension of 90 days can be given after a conversation with the client to determine that a good faith effort to sell the property is being made and no offers were received

The property’s failure to sell must be beyond the client’s control for any extension to be given

Land held in trust by the U.S. federal government for American Indian nation that can only be sold with permission of other individuals, the American Indian nation or federal government is exempt

Property in a life estate is counted per this article:  Resource – Life Estate

Example:

Mary Ross has a vacant lot on which she meant to build a house until she had a serious accident. She is now disabled and unemployed. She is renting an apartment. The loan officer at her bank finds the fair market value for the property to be $12,000. The mortgage statement shows she still owes $6,000. The countable value for the lot is $6,000 ($12,000 FMV – $6,000 loan balance).