M21-1MR, Part V, Subpart iii, Chapter 1, Section J

Section J. Net Worth Overview

In this Section

This section contains the following topics: Topic 67 68 6' 7* 71 72 Topic Name General Information on Net Worth A !"sting Impro#e $ension Awar s %ase on &hanges in Net Worth A !"sting (ection )*6 $ension Awar s %ase on &hanges in Net Worth +enial +"e to ,-cessi#e Net Worth +e#eloping the .al"e of /eal ,state ,-hi0it 1: 1ife ,-pectanc2 Ta0le for Net Worth +eterminations See Page 1-J-2 1-J-6 1-J-1* 1-J-12 1-J-17 1-J-2*

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

67. General Information on Net Worth

Introduction

This topic contains general information on net worth3 It incl" es information on the impact of the claimant4s net worth on .A 0enefits net worth criteria the applica0le reg"lations the impact of net worth on Impro#e $ension5 an (ection )*6 $ension e#al"ating net worth5 an the effect of net worth on 0enefit eligi0ilit23

Change ate

6e0r"ar2 1)5 2**7 The claimant4s net worth is a factor in etermining eligi0ilit2 for (ection )*6 an Impro#e $ension5 as well as in esta0lishing parents as epen ents on #eterans4 compensation awar s3 Note: Net worth is not a factor in 7l 1aw $ension an $arents4 +epen enc2 an In emnit2 &ompensation 8+I&9 cases3

a! Impact o" the C#ai mant $s Net %ort h on V& 'ene "its

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

67. General Information on Net Worth, Continued

b! Net %orth Crite ria

The term net worth for +epartment of .eterans Affairs 8.A9 p"rposes incl" es all personal propert2 owne 02 the claimant5 e-cept for personal effects s"ita0le to the claimant4s reasona0le mo e of life3 6or #eterans4 Impro#e $ension5 a #eteran4s net worth incl" es the net worth of his:her spo"se3 This means that normal ho"sehol o0!ects an possessions are not incl" e in a net worth etermination3 1i;ewise5 motor #ehicles "se for famil2 transportation are not incl" e in etermining net worth5 nor is the claimant4s home3 <owe#er5 personal propert2 that is owne primaril2 as an in#estment5 for e-ample5 an anti="e a"tomo0ile or a coin collection5 is incl" e in etermining net worth3 Note: The term personal property incl" es all tangi0le propert2 that is not lan 8real propert29 or fi-t"res on lan 3

c! &pp#icab#e Regu #atio ns

The applica0le reg"lations are )8 &6/ )327> for Impro#e $ension5 an )8 &6/ )326) for (ection )*6 $ension an esta0lishing a parent as a epen ent for compensation3

d! Impact o" 6or Impro#e $ension p"rposes5 consi er the income of the #eteran an Net spo"se as affecte 02 the e-penses of the famil2 "nit3 %ort h o" Reference: 6or more information concerning Impro#e $ension net worth the eterminations5 see ?21-1?/5 $art .5 ("0part iii5 13J3683 Vete ran and Spou se on Impr o(ed Pensi on
Continued on next page

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

67. General Information on Net Worth, Continued

e! Impact o" Net %ort h o" Chi# dren on Impr o(ed Pensi on

6or Impro#e $ension p"rposes5 a epen ent chil 4s net worth is e#al"ate separatel23 If the chil 4s net worth is e-cessi#e5 o not esta0lish the chil as the #eteran4s or s"r#i#ing spo"se4s epen ent3 6or s"r#i#ing chil ren esta0lishing Impro#e $ension entitlement in their own right5 e#al"ate the chil 4s net worth the same wa2 as for a #eteran or s"r#i#ing spo"se3

"! Impact o" 6or (ection )*6 $ension p"rposes5 consi er the net worth of the #eteran or Net s"r#i#ing spo"se alone3 %ort h on Reference: 6or more information concerning (ection )*6 $ension net worth Secti eterminations5 see ?21-1?/5 $art .5 ("0part iii5 13J36'3 on )*+ Pensi on

g! ,(a#uating The 0asic iss"e in e#al"ating net worth is to etermine whether or not the Net claimant4s financial reso"rces are s"fficient to meet the claimant4s 0asic %ort nee s witho"t assistance from .A3 h

.A4s income-0ase programs are inten e to gi#e 0eneficiaries a minim"m le#el of financial sec"rit23 The2 are not inten e to protect s"0stantial assets or 0"il "p the 0eneficiar24s estate for the 0enefit of heirs3 If a claimant4s assets are s"fficientl2 large that the claimant co"l li#e off these assets for a reasona0le perio of time5 en2 pension for e-cessi#e net worth3 If net worth is later eplete 5 the claimant can reopen the pension claim3
Continued on next page

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

67. General Information on Net Worth, Continued

h! ,""ect o" Net %ort h on 'ene "it ,#igi bi#it.

If net worth is a factor for the 0enefit claime 5 consi er if it is reasona0le5 "n er all the circ"mstances5 for the claimant to cons"me some of his:her estate for maintenance3 If a"thori@ation ma;es a formal fin ing that the claimant4s net worth sho"l 0e cons"me for maintenance5 en2 the pension claim3 $ension entitlement is 0ase on nee an that nee oes not e-ist if a claimant4s estate is of s"ch si@e that he:she co"l "se it for li#ing e-penses3

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

68. Adju tin! Im"roved #en ion Award $a ed on %han!e in Net Worth

Introduction

This topic contains information on a !"sting Impro#e $ension awar s 0ase on change in net worth3 It incl" es information on iscontin"ance for e-cessi#e net worth an an e-ample when to consi er the net worth of the spo"se5 an chil the net worth for a chil entitle in his:her own right the res"mption of 0enefits 0ase on the reconsi eration of net worth5 an two e-amples of a !"sting impro#e pension awar s 0ase on changes in net worth3

Change ate

6e0r"ar2 1)5 2**7 If the net worth of a 0eneficiar2 with a r"nning awar 0ecomes e-cessi#e

a!

isc ontin etermine the ate from which net worth 0ecame e-cessi#e5 an uanc e "or iscontin"e the awar "n er reason co e 125 effecti#e the first of the following calen ar 2ear 8"nless an earlier ate of iscontin"ance is ,0ce appropriate 0eca"se of e-cessi#e income or for other reasons93 ssi(e Net %ort h

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

68. Adju tin! Im"roved #en ion Award $a ed on %han!e in Net Worth, Continued

b! ,0amp#e1 Ter mina tion "or ,0ce ssi(e Net %ort h

Situation: A #eteran with a r"nning awar owns a painting 02 a famo"s artist #al"e at A)*5***3 The artist ies on J"ne 2B5 2***5 an the #al"e of the painting imme iatel2 goes "p to A1**5***3 .A "ses VA Form 21-8049, Request for Details of Expenses, to o0tain information a0o"t the #eteran4s financial stat"s an etermines that the painting #al"e at A1**5*** ma;es the #eteran4s net worth e-cessi#e effecti#e J"ne 2B5 2***3 Result: Appl2 the en -of-the-2ear r"le for the effecti#e ate an the awar as of Jan"ar2 15 2**13 iscontin"e

Note: If the claimant fails to isclose asset information an it is later etermine that net worth was e-cessi#e from the effecti#e ate of the awar 5 stop the awar from ate of inception3 The claimant was ne#er properl2 entitle to pension3 Reference: 6or more information on the effecti#e ate for iscontin"ance "e to net worth 0arring entitlement5 see )8 &6/ )366*8a93
c! %hen to Cons ider the Spou se$s Net %ort h

The net worth of the #eteran4s spo"se5 incl" ing separate propert25 is a factor in Impro#e $ension cases3 +en2 the pension claim if5 after consi ering all famil2 income an the net worth of the #eteran an spo"se5 it appears reasona0le that some part of the estates of the #eteran an spo"se sho"l 0e cons"me for the #eteran4s maintenance3

d! %hen to Cons ider the Chi# d$s Net %ort h

The net worth of the chil of a #eteran or s"r#i#ing spo"se can also 0e a factor for Impro#e $ension p"rposes3 <owe#er5 o not a the chil 4s net worth to that of the pa2ee3 ,#al"ate the chil 4s net worth in epen entl2 an if the chil 4s net worth is e-cessi#e5 remo#e the chil from the awar 5 per )8 &6/ )327B8095 regar less of whether remo#ing the chil an his:her income res"lts in a higher rate of pension3

Continued on next page

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

68. Adju tin! Im"roved #en ion Award $a ed on %han!e in Net Worth, Continued

e! Net %orth o" a Chi# d ,ntit #ed in 3is4 3er 56n Righ t

+en2 0enefits for a chil claimant if5 after consi ering the income an net worth of the chil 5 it appears reasona0le that some part of the chil 4s estates 0e cons"me for the chil 4s s"pport3

"! Pa.ment o" 'ene "its 'ase d on the Reco nside ratio n o" Net %ort h g! ,0amp#e 11 &d7u sting Impr o(ed Pensi on &6a rds 'ase d on Cha nges in Net %ort h

If it is etermine that net worth is no longer e-cessi#e5 res"me an awar that was iscontin"e 0eca"se of e-cessi#e net worth from the ate that net worth cease to 0e e-cessi#e3 <owe#er5 if the claim has 0een finall2 a !" icate "n er )8 &6/ )316*8 9 0eca"se one 2ear has e-pire from the ate of notice of the iscontin"ance or the ate of enial on appellate re#iew5 the awar cannot 0e res"me earlier than the ate of claim5 per )8 &6/ )3)1 an )8 &6/ )366*8 93

Situation: 7cto0er 1B5 2**>: A #eteran with a r"nning awar wins A1**5*** in the Irish (weepsta;es3 No#em0er 15 2**>: The awar is stoppe 0eca"se the #eteran4s income for .A p"rposes 8I.A$9 is pro!ecte to e-cee the ma-im"m ann"al pension rate 8?A$/93 No#em0er 115 2**6: The #eteran reopens the claim3 The #eteran claims no income from an2 so"rce3 .A writes to the #eteran in="iring as to whether the #eteran still has the A1**5*** an 5 if so5 whether an2 interest is recei#e from the A1**5***3 The #eteran writes 0ac; an states that she still has the A1**5*** 0"t that she ;eeps the mone2 "n er her mattress an no interest is recei#e 3 +ecem0er 2B5 2**6: .A isallows the claim for e-cessi#e net worth3 +ecem0er 275 2**6: The #eteran loses the A1**5*** in a 0"rglar23 Jan"ar2 2B5 2**7: The #eteran reopens the claim3

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

Result: Ass"ming the #eteran still has no income5 awar pension effecti#e +ecem0er 275 2**65 s"0!ect to )8 &6/ )3)13
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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

68. Adju tin! Im"roved #en ion Award $a ed on %han!e in Net Worth, Continued

h! ,0amp#e 21 &d7u sting Impr o(ed Pensi on &6a rds 'ase d on Cha nges in Net %ort h

Situation: Appl2 the same facts as ,-ample 1 a0o#e5 0"t the #eteran waits "ntil +ecem0er 285 2**75 to reopen the claim 0ase on re "ce net worth3 Result: The earliest ate pension can 0e awar e is +ecem0er 285 2**75 s"0!ect to )8 &6/ )3)13

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

6&. Adju tin! Section '(6 #en ion Award $a ed on %han!e in Net Worth

Introduction

This topic contains information on a !"sting (ection )*6 $ension awar s 0ase on changes in net worth3 It incl" es information on e#eloping for net worth in (ection )*6 $ension cases the criteria for e-cessi#e net worth the termination of pension5 an han ling a A8*5*** estate when net worth is not a 0ar3

Change ate

a!

e(e#oping "or Net %ort h in Secti on )*+ Pensi on Case s

If the iss"e is raise that net worth ma2 0e e-cessi#e in a (ection )*6 $ension case5 re="est all the e#i ence nee e to etermine whether the 0eneficiar2 is still entitle to pension3 As; the 0eneficiar2 to s"0mit VA Form 21-8049 to pro#i e information a0o"t his:her financial stat"s3 Reference: 6or more information on e#eloping for net worth information5 see ?21-1?/5 $art .5 ("0part i5 )3A3

b! Criteria "or If the claimant4s financial reso"rces are s"fficient to meet personal nee s5 the ,0ce intent of the law is that no pa2ments ma2 0e a"thori@e 3 ssi(e Net Appl2 the criteria in )8 &6/ )326)5 ta;ing into consi eration the %ort h

t2pe an amo"nt of propert2 in#ol#e age an life e-pectanc2 of the claimant n"m0er an state of health of persons epen ent on the claimant for s"pport5 an co"nta0le income3

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

6&. Adju tin! Section '(6 #en ion Award $a ed on %han!e in Net Worth, Continued

c! isc ontin uanc e o" Secti on )*+ Pensi on

When pension is to 0e iscontin"e 0eca"se of e-cessi#e net worth5 prepare a formal etermination for appro#al 02 a (enior .eterans (er#ice /epresentati#e 8(.(/93 Cse VA Form 21-542 5 !orpus of Estate Determination, for this p"rpose3 6"rnish a f"ll statement of facts concerning the si@e an composition of the estate an the concl"sion reache 3 The en -of-the-2ear r"le applies to iscontin"ances for e-cessi#e net worth in (ection )*6 $ension cases3 +iscontin"e 0enefits as of the first a2 of the calen ar 2ear after the calen ar 2ear "ring which net worth 0ecame e-cessi#e5 per )8 &6/ )366*8a98293 If a (ection )*6 $ension 0eneficiar2 has a net worth of A8*5*** or more an it is etermine that net worth is not a 0ar to entitlement5 prepare an a ministrati#e ecision on VA Form 21-542 3 Note: $reparation of VA Form 21-542 is not re="ire if the etermination is fa#ora0le an the estate is less than A8*5***3

d! 3and#ing a :8*,* ** ,stat e %he n Net %ort h Is Not a 'ar

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

7(. )enial )ue to *+ce

ive Net Worth

Introduction

This topic contains information on enial "e to e-cessi#e net worth3 It incl" es information on e-cessi#e net worth as a ="estion of fact when a formal net worth a ministrati#e ecision is re="ire a ministration ecisions reopening a claim after enial for e-cessi#e net worth specific e-cl"sions from net worth5 an the con#erti0ilit2 of assets an three e-amples3

Change ate

6e0r"ar2 1)5 2**7 No specific ollar amo"nt can 0e esignate as e-cessi#e net worth3 What constit"tes e-cessi#e net worth is a ="estion of fact for resol"tion after consi ering the facts an circ"mstances in each case3 A n"m0er of #aria0les m"st 0e ta;en into consi eration when ma;ing a net worth etermination3 6actors to consi er incl" e income from other so"rces famil2 e-penses claimant4s life e-pectanc25 an con#erti0ilit2 into cash of the assets in#ol#e 3

a! ,0cessi(e Net %ort h as a ;ues tion o" <act

Note: In general5 the ol er an in i#i "al is5 the smaller estate the in i#i "al re="ires to meet his:her financial nee s3 The .A pension program is not inten e to protect s"0stantial assets or 0"il "p a 0eneficiar24s estate for the 0enefit of heirs3 Reference: 6or more information on e#al"ating net worth5 see ?21-1?/5 $art .5 ("0part iii5 13J3673g3
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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

7(. )enial )ue to *+ce

ive Net Worth, Continued

b! %hen a Net A formal a ministrati#e net worth ecision is re="ire if %ort h the 0eneficiar2 has net worth of A8*5*** or more5 whether or not net worth ecis 0ars entitlement5 or ion net worth 8of an2 amo"nt9 0ars entitlement3 Is Re=u ired c! Preparing &dm inistr ati(e ecis ions

When re="ire 5 prepare a formal a ministrati#e ecision for appro#al 02 an (.(/3 Alwa2s consi er the claimant4s net worth e#en tho"gh it might 0e 0elow A8*5***3 Net worth of s"0stantiall2 less than A8*5*** co"l 0e a 0ar to 0enefits in a partic"lar case3 $repare the a ministrati#e ecision on VA Form 21-542 3 If the information nee e to f"ll2 complete VA Form 21-542 is not of recor 5 initiate e#elopment3 The ecision m"st 0e t2pewritten3 Reference: 6or information on the life e-pectanc2 ta0les for net worth eterminations5 see ?21-1?/5 $art .5 ("0part iii5 13J3723
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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

7(. )enial )ue to *+ce

ive Net Worth, Continued

d! Reopening a C#ai m &"ter eni a# "or ,0ce ssi(e Net %ort h

Cse the ta0le 0elow to etermine if a claim can 0e reopene after enial for e-cessi#e net worth3 Note: If (ection )*6 $ension 0enefits are iscontin"e 0eca"se of e-cessi#e net worth5 the reopene claim m"st 0e consi ere "n er the criteria for Impro#e $ension3

I" a c#aim is denied "or Then > e0cessi(e net 6orth > or an awar is iscontin"e the claimant has one 2ear from the ate of 0eca"se of e-cessi#e net worth notification of enial or iscontin"ance to s"0mit new e#i ence or file a notice of isagreement 8N7+93 an circ"mstances change so 0enefits can 0e pai from the ate net worth that net worth no longer 0ars is etermine not to 0ar entitlement5 entitlement pro#i e the reopene claim is recei#e 0efore the enial for e-cessi#e net worth 0ecomes final3 Note: 7nce the ecision 0ecomes final5 the earliest entitlement ate for a reopene claim is the ate of claim5 per )8 &6/ )366*8 93 8)8 &6/ )3)1 applies to the pa2ment ate39
e! Speci"ic ,0c# usion s <ro m Net %ort h

&ertain specific t2pes of pa2ments are e-cl" e from consi eration as net worth3 References: 6or information on the specific e-cl"sions for net worth consi erations in Impro#e $ension cases5 )8 &6/ )327> (ection )*6 $ension cases5 see )8 &6/ )326)5 an all .A income-0ase 0enefits programs5 see ?21-1?/5 $art .5 ("0part iii5 13I3663
Continued on next page

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

7(. )enial )ue to *+ce

ive Net Worth, Continued

"! Con( ertib i#it. o" &sset s

7ne factor to consi er in ma;ing a net worth etermination is whether or not the propert2 can rea il2 0e con#erte into cash at no s"0stantial sacrifice3 This means that a claim sho"l not 0e enie for e-cessi#e net worth if the claimant cannot con#ert assets into significant cash assets 0eca"se of temporar2 mar;et con itions or other reasons3 <owe#er5 if a piece of propert2 can 0e con#erte into significant cash assets5 it is immaterial that the propert2 was worth more in the past or might 0e worth more in the f"t"re3 The sole ="estion to consi er is how m"ch mone2 the claimant wo"l recei#e if the propert2 were sol at this time3 .A4s income-0ase 0enefits programs are inten e to help low-income 0eneficiaries sec"re the 0asic necessities of life3 The2 are not inten e to ins"re s"0stantial assets against changes in mar;et con itions3

g! ,0amp#e 11 Con( ertib i#it. o" &sset s

Situation: The #eteran p"rchase a farm fi#e 2ears ago for A2>*5***3 The #eteran emonstrates that5 0eca"se of epresse lan #al"es in the area5 the propert2 co"l 0e sol to a2 for onl2 A1>*5***3 The #eteran still owes A1>*5*** on the propert23 The #eteran wo"l ha#e no a itional isposa0le income if the propert2 were to 0e sol 3 Result: The #al"e of the propert2 for p"rposes of a .A net worth etermination is A*3
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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

7(. )enial )ue to *+ce

ive Net Worth, Continued

h! ,0amp#e 21 Con( ertib i#it. o" &sset s

Situation: The #eteran inherite a farm fi#e 2ears ago3 At that time the farm was worth A2>*5***3 The #eteran emonstrates that5 0eca"se of epresse lan #al"es in the area5 the propert2 co"l 0e sol to a2 for onl2 A1>*5***3 The #al"e of the propert2 for p"rposes of a .A net worth etermination is A1>*5***3 Result: The fact that the propert2 was worth s"0stantiall2 more fi#e 2ears ago or might 0e worth s"0stantiall2 more in the f"t"re is irrele#ant3 Situation: The #eteran owns a piece of real estate that was #al"e last 2ear at A'*5***3 <owe#er5 a recent newspaper stor2 in icate that a piece of lan 5 appro-imatel2 one ;ilometer awa25 was pre#io"sl2 "se as a to-ic waste "mp3 (tate en#ironmental officials are con "cting tests to etermine the e-tent of contamination3 In the meantime5 the #eteran4s lan co"l not 0e sol for more than A1*5***3 Result: The #al"e of the propert2 for net worth etermination p"rposes is A1*5***3 <owe#er5 if it is later etermine that the #eteran4s propert2 is "ncontaminate an its mar;et #al"e increases5 reconsi er net worth3

i! ,0amp#e )1 Con( ertib i#it. o" &sset s

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

7,. )evelo"in! the -alue of .eal * tate

Introduction

This topic contains information on e#eloping the #al"e of real estate3 It incl" es information on the c"rrent #al"e of propert2 so"rce of the information a0o"t propert2 #al"e e-cl" ing the #al"e of a single-famil2 welling etermining the reasona0le lot area "al-"se of propert25 an the effect of (tate homestea an e-emption stat"tes3

Change ate

6e0r"ar2 1)5 2**7 &laimants who ha#e hel parcels of real estate for long perio s of time ma2 0e "naware of c"rrent real estate prices5 an greatl2 "n erestimate the #al"e of their hol ings3 If it appears that a claimant is "n erestimating the #al"e of real propert25 as; the claimant to f"rnish e#i ence of the c"rrent mar;et #al"e of the real estate3

a! Current Va#u e o" Prop ert.

b! Sources o" In"or mati on &bo ut Prop ert. Va#u e

$ossi0le so"rces of information a0o"t propert2 #al"e incl" e a formal appraisal of the #al"e of the real estate statement from a real estate 0ro;er in the area as to the #al"e of compara0le real estate in the #icinit2 statement from a co"nt2 farm agent as to the #al"e of the lan or other real estate statement from a local 0an; loan officer as to the #al"e of compara0le real estate in the #icinit25 an statement from the local ta-ing a"thorit2 as to the #al"e of the real estate3 Note: A statement sho"l accompan2 s"ch statements from the ta-ing a"thorit2 showing the relationship 0etween assesse #al"e an mar;et #al"e3
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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

7,. )evelo"in! the -alue of .eal * tate, Continued

c! ,0c#uding the Va#u e o" a Sing# e<ami #. 6e# #ing

In etermining net worth5 o not incl" e the #al"e of the claimant4s singlefamil2 welling5 incl" ing a reasona0le lot area3 If the claimant owns an resi es in a m"ltifamil2 welling5 e-cl" e from net worth consi eration onl2 the #al"e of the "nit act"all2 occ"pie 02 the claimant3 Example: The claimant owns a "ple- worth A2**5*** resi es in one of the "nits5 an 0oth "nits are ro"ghl2 compara0le3 &onsi er net worth of A1**5***3

d!

etermining the Reas onab #e ?ot &rea

The si@e of the Dreasona0le lot areaE that can 0e e-cl" e from net worth consi eration is etermine 02 the egree to which the propert2 is connecte to the welling an the t2pical si@e of lots in the imme iate area3 &ontig"o"s lan which is closel2 connecte to the welling in terms of "se5 an which oes not greatl2 e-cee the c"stomar2 si@e of lots in the imme iate area5 is e-cl" e from net worth consi eration3 In some instances a claimant4s place of resi ence an place of 0"siness are the same3 Example: A farmer ma2 li#e in a ho"se on the farm or a grocer ma2 li#e in an apartment o#er the store3 In s"ch cases5 the #al"e of the resi ence area m"st 0e consi ere separatel2 from the #al"e of the 0"siness area3 The #al"e of the resi ence area ma2 0e e-cl" e 3 The #al"e of the 0"siness area is consi ere net worth the same as an2 other 0"siness asset3 If the claimant li#es on a farm which is not "se for 0"siness p"rposes5 e-cl" e the #al"e of the resi ence area an consi er the rest of the farm as net worth3
Continued on next page

e!

ua#-@se o" Prop ert.

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

7,. )evelo"in! the -alue of .eal * tate, Continued

"! ,""ect o" State 3om estea d and ,0e mpti on Statu tes

(tate laws ma2 pro#i e that certain propert2 is part of the claimant4s homestea or e-empt from the claims of cre itors3 ("ch homestea an e-emption stat"tes are of no conse="ence in etermining if the #al"e of the propert2 is to 0e consi ere part of a claimant4s estate for .A p"rposes3

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

7/. *+hi0it ,1 2ife *+"ectanc3 4a0le for Net Worth )etermination

Change ate

6e0r"ar2 1)5 2**7 This e-hi0it contains the life e-pectanc2 ta0le for claimants of ages )*

a! ?i"e

,0pe thro"gh '>3 ctanc . Tab# e

C#aimant$s &ge )* )1 )2 )) )B )> )6 )7 )8 )' B* B1 B2 B) BB B> B6 B7 B8 B' >* >1 >2 >) >B >> >6 >7 >8 >' 6* 61 62

?i"e ,0pectanc. B63* B>31 BB31 B)32 B232 B13) B*3B )'3B )83> )736 )637 )>37 )B38 ))3' ))3* )231 )13) )*3B 2'3> 2837 2738 273* 2631 2>3) 2B3> 2)37 223' 2232 213B 2*36 1'3' 1'32 183>

C#aimant$s &ge 6) 6B 6> 66 67 68 6' 7* 71 72 7) 7B 7> 76 77 78 7' 8* 81 82 8) 8B 8> 86 87 88 8' '* '1 '2 ') 'B '> or ol er

?i"e ,0pectanc. 1738 1731 163B 1>37 1>31 1B3B 1)38 1)32 1236 123* 113> 1*3' 1*3B '3' '3) 83' 83B 73' 73> 73* 636 632 >3' >36 >3) >3* B37 B3B B31 )38 )3> )32 )3*

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M21-1MR, Part V, Subpart iii, Chapter 1, Section J

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