TN 32 (07-90)
Not all of an individual's assets are resources for SSI purposes. Moreover, in certain
situations, an asset that is not a resource may become one at a later date or vice
versa. The distinction is important since:
an asset that is not a resource does not count against the statutory resource limit
(while a resource may count); and
proceeds from the sale or trade of a resource (i.e., the amount representing conversion
of principal from one form to another) are also resources but what a person receives
from a nonresource is subject to evaluation as income at the time of receipt.
EXAMPLE: An individual is the beneficiary of a trust which is not his resource. Therefore,
when the trust pays him his monthly allowance,he receives income.
Resources are cash and any other personal property, as well as any real property,that
an individual (or spouse, if any):
has the right, authority, or power to convert to cash (if not already cash); and
is not legally restricted from using for his/her support and maintenance.
Property does not cease to be a resource simply because it has no current market value.
Even though there is no value to count, the property remains a resource for so long
as it meets the criteria in 1. above. If the property develops a market value at a
later time, there has been an increase in the value of a resource (SI 01110.600 B.1.) rather than a receipt of income.
Any property (an asset) that does not meet the criteria in 1. above is not a resource
even though it may be an asset (e.g., an individual who has an ownership interest
in property but is not legally able to transfer that interest to anyone else does
not have a resource).
Real property is land, including buildings or immovable objects attached permanently
to the land.
Personal property is any property that is not real property. The term encompasses
such things as cash, jewelry, household goods, tools, life insurance policies,and
Conserved funds (or other property) remain resources even during a period when they
are being held in a bank account or by the paying agency because it is necessary to
obtain a new payee or guardian. See SI 01120.022.
An invalidly transferred resource remains a resource to the “former” owner and, as such, is subject to being counted. For development of validity of ownership
transfers, see SI 01150.001.
Except for cash, any kind of real or personal property may be either liquid or nonliquid.
For the distinction between liquid and nonliquid resources, and its significance,
see SI 01110.300.
When an individual first receives property (as a gift or inheritance, for instance,
but not as a purchase or trade of one resource for another), the new property is subject
to evaluation under the income rules for the month of receipt and under the resources
rules thereafter. See SI 01110.600 B.3.
For the resources treatment of previously unknown assets, see SI 01110.117.