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MEDICAL SERVICES POLICY MANUAL, SECTION E

E 522 Determining Value of Personal Property

7. Stock in Closed Corporation - Stock held in a corporation wholly owned by one or more board members requires complete development to determine resource value. The value of stock in a closed corporation which has elected not to trade its stock publicly is determined by subtracting the liabilities of the corporation from its assets and dividing the resulting net assets by the number of stock shares outstanding. Net assets of the corporation must be determined by examination of the corporate tax return for the most recent taxable year. The individual who owns stock in a closed corporation must provide information necessary to determine its resource value. 8. Stock in Alaskan Native Corporation - Shares of stock held in an Alaskan Native regional or village corporation are excluded from resources. 9. Mutual Fund Shares - A mutual fund is a company that buys and sells securities and other property with funds obtained from its shareholders. Value determinations for mutual fund shares follows the procedure used in determining the value of stock. 10. Municipal, Corporate, and Government Bonds - A bond is a written agreement to pay a sum of money at a future specified date. Even though a bond must be held until its specified date of maturity to be redeemed for its stated value, it is saleable and transferable. A “municipal bond” is the obligation of a state or a locality (county, city, town, village, or special purpose authority like a school district). “Corporate bonds” are obligations of private corporations, and “government bonds” denote a transferable obligation backed by an agency of the federal government. Current market value is generally determined as it would be for stock. It is frequently necessary to contact a local securities dealer to establish the market value of a bond. Documentation of the value determined will be recorded in the case narrative. 11. U.S. Savings Bonds - A U.S. Savings Bond is an obligation of the federal government which is nontransferable. A U.S. Savings Bond can only be sold back to the government. U.S. Savings Bonds are usually registered in the name of the owner(s) shown on the front of the bond, and may be redeemed by the owner by completion of a form on the