This article is a section taken from MA for People Who Are Age 65 or Older or People Who Are Blind or Have a Disability (MA-ABD), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Other Real Property Interests

This section provides policies that apply to other real property interests. Unless otherwise specified, these interests generally are treated as real property, and equity value is evaluated as a non-homestead property.

Cooperative Living Arrangement

In a cooperative living arrangement, people buy shares or a membership in a cooperative housing corporation and share a common residential structure. The corporation owns or leases all real estate, and the members share a fee to cover the operating expenses. As part of the membership in the cooperative, the person has an exclusive right to live in a specific unit as long as he or she adheres to the cooperative’s rules and regulations.

Evaluation of Cooperative Living Arrangements

If the cooperative is the primary residence of a person, it is considered homestead property and is excluded.

If a person leaves the home and does not expect to return, the cooperative would no longer qualify for the homestead exclusion and would be evaluated as non-homestead real property.


An easement gives one person the right to use the land of another person for a specific purpose.


A leasehold gives one person control over certain property of another person for a specified period. In some states, a “lease for life” can create a life estate.

Mineral Rights

Mineral rights represent ownership interest in natural resources such as coal, oil, or natural gas, which normally are extracted from the ground.

Evaluation of Mineral Rights

If a person owns both surface rights and mineral rights on the same property, mineral rights are not considered separate resources. The fair market value (FMV) of the land can be assumed to include the value of the mineral rights.

  • If surface rights on the same property are excluded (for example, as the home), so are the oil and mineral rights.

If a person does not own the land to which the mineral rights pertain, the FMV is estimated from a knowledgeable source, such as:

  • The Bureau of Land Management
  • The United States Geological Survey
  • Any mining company that holds leases

Timber Rights

Timber rights permit one person to cut and remove freestanding trees from the property of another person.

Water Rights

Water rights usually confer upon the owner of riverfront or shorefront property the right to access and use the adjacent water.

Legal Citations

Minnesota Statutes, section 256B.056, subdivision 1a

CREDIT: The content of this post has been copied or adopted from the Minnesota Healthcare Programs Eligibility Policy Manual, originally published by the Minnesota Department of Human Services.

This is also part of a series of posts on Minnesota Healthcare Eligibility Policies.