(Revised 01/01/04 ML2893)
Assets listed in a corporation's name are not counted as assets of an individual household.
If a person owns stock in a corporation, the stock is counted as an asset.
Exceptions:
- If it is essential to their employment.
- If an employee of a corporation must hold stock as a condition of employment.
Example
If a farmer has incorporated the farm, that individual is the sole owner of the corporation's assets that are related to the farm operation. The farmer's stock in the corporation is essential to that individual's employment and excluded from being counted as an asset.
When the value of closely held corporate shares (only a few shareholders) is not readily available, the worker must subtract corporate liabilities from assets and prorate the difference among the various shareholders based on the percentage of shares held.
Example:
Value of Stock
$22,000 Corporate assets
10,000 Corporate liabilities
$12,000 Value of corporation
x .40 Household has 40% of the stock
$ 4,800 Value of Stock
