Page 34

Chapter: 1600 Assets Program: MSSI, SFP 30

• Personal care items and clothing; • Pets, such as a cat, dog, hamster, horse, monkey, or snake; • Educational or recreational items, such as books, musical instruments, or hobby materials; or • Items of cultural or religious significance to an individual, such as ceremonial attire. • Items required because of an individual’s physical or mental impairment

Other Personal Property Other personal property may be a countable resource Property that an individual acquires or holds because of its value or as an investment is a countable resource (unless excluded under a different provision); and is not considered a household good or personal effect for the purposes of this exclusion.

Examples of other personal property • Gems; • Jewelry that one does not wear or does not hold for family significance; • Animals for investment purposes, such as a horse or dog for breeding, for resale, or investment; and • Collectibles.

Items held because of their value or investment Items an individual acquires or holds because of their value, or as an investment, are not considered household items or personal effects; even if they otherwise meet the definitions provided above

Example: Mrs. Willis received $10,000 from an insurance settlement. Staff must determine how she spent the $10,000. Mrs. Willis paid back creditors with $7,000 and purchased $3,000 in jewelry that she wears. Because Mrs. Willis wears the jewelry, staff must determine if the jewelry should be treated as a personal effect or as other personal property. Mrs. Willis’s statements establish that the jewelry has no family significance and that she purchased the jewelry for its value, to spend down the $10,000. Staff determines the jewelry is not an excludable personal effect because it was purchased for its value. Staff treated the jewelry as “other personal property” and evaluates it using normal resource counting rules. 1640.0565.03 Household Goods/Personal Effects Verification (MSSI, SFP) The statement on the application that an individual (or spouse) does not own any unusual items worth more than $500 is accepted without further review unless there is evidence to the contrary.

If items of unusual value (with a total estimated FMV of $500 or more), are reported, the individual must provide verification of the FMV of these items. Any reliable and reasonable method may be used to establish and verify FMV; for example, sales slips, insurance, prior appraisals, contacts with local merchants. The development and assessment of values must be recorded for the case record.

Insurance and insurance appraisals often reflect replacement value (the amount it would cost to purchase a similar item new) rather than fair market value of the item in question. The FMV, not the replacement value, is the amount to be used in determining the asset value. 1640.0565.04 Value of Household Goods/Personal Effects (MSSI, SFP) If items of unusual value are involved, the eligibility specialist must conclude that the FMV of all other durable household goods and personal effects is $1,000 unless there is evidence to the contrary. This amount is added to the FMV of the items of unusual value. The total less the