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Chapter: 1600 Assets Program: MSSI, SFP 31

$2,000 equity exclusion, described in passage 1640.0565.01, is added to the total value of all other included assets.

If the estimated FMV of included household goods and personal effects exceeds allowable limits the FMV must be verified. Any reasonable, practical method can be used to verify FMV.

An individual's records can be used to document their share of ownership and equity in personal property. If there is any doubt about the documentation of any legal debts claimed by the individual, third party verification must be obtained. 1640.0566 Stocks and Bonds (MSSI, SFP) Investments include the value of stocks and bonds. The current market quotation is considered the asset value. Information sufficient to establish ownership is required in order to determine if the stock/bond value must be included/excluded. Sources of information on the current market value of stocks and bonds may be secured from the bank, investment company, newspapers, and the like. The source and date of the quotation must be recorded. 1640.0567 Definition of Stocks (MSSI, SFP) Shares of stock represent ownership in a corporation. The shares of many corporations are traded on the New York Stock Exchange or the American Stock Exchange. Many stocks are also traded “over-the-counter”.

Most stocks, for incorporation purposes, are assigned a certain value known as “par value”. Par value has no relation to the actual market value of a stock.

The value of a stock is normally determined by the demand for it when it is bought and sold. As the result of constant trading, the value of stocks varies daily. To establish the value of a stock, use the most current closing price.

The individual is required to furnish stock certificates unless the stock is being held for the individual by a securities firm. If so, the eligibility specialist must obtain the individual's copy of the firm's most recent statement concerning the individual's account.

The closing prices (on any particular date) of many stocks may be verified by consulting the following day's newspaper or financial newspaper. If the closing price of a stock is not shown in the next day's newspaper, contact a local securities firm to determine its value.

The value of stocks traded over-the-counter is expressed on a "bid" and "asked" basis. A "bid" is the amount being offered for the stock. The "asked" figure is the amount the seller asked for the stock. Use the bid price to determine the market value of this type of stock.

The individual's statement that a stock is worthless must be supported by a local securities dealer's statement. 1640.0568 Stock in a Close Corporation (MSSI, SFP) A "close" or closely held corporation is wholly owned or controlled by one or more members of the board. Stock in this type of company must be reviewed to determine if the stock is a liquid or nonliquid asset. Usually the stocks cannot be converted to cash within 20 days and they may qualify for exclusion as property needed for self-support.

If such stocks are not traded publicly the value of the stock is determined by dividing the company's net assets (total assets minus liabilities) by the total number of shares. The corporation's net assets can be obtained from the corporation's most recent tax return.