TN 32 (07-90)

SI 01110.310 Resources Assumed to be Nonliquid

A. Introduction

Certain noncash resources, though they may occasionally be liquid, are nearly always nonliquid.

B. Operating Policy

1. ASSUMPTION OF NONLIQUIDITY

Absent evidence to the contrary, we assume that the following types of resources are nonliquid:

  • household goods and personal effects;

  • automobiles, trucks, tractors and other vehicles;

  • machinery and livestock;

  • buildings, land and other real property rights; and

  • noncash business property.

2. EVIDENCE TO THE CONTRARY

  1. If there is no apparent evidence to the contrary of the assumptions in 1. above, we do not seek out any evidence to the contrary. There is no need to document a lack of evidence to the contrary.

  2. In very rare situations an individual may volunteer firm evidence that one of the above types of resources is liquid (i.e., its sale has been accomplished or arranged within 20 workdays). Document the file and proceed accordingly only if the distinction is material on a prospective basis.

3. DO NOT REOPEN PRIOR DETERMINATION

When there is evidence to the contrary of the assumptions in 1. above, do not reopen a prior determination of non- liquidity retroactively. Consider the prior determination correct when made since there was no evidence to the contrary at that time.

C. Example — Evidence to the Contrary

1. SITUATION

On October 10, 1989, Mr. Hosea Hooper,a widower, filed for SSI benefits. Mr. Hooper alleged owning countable liquid resources totaling $900 plus a second automobile worth $2,000. (His only other resource, another automobile, was excluded totally as necessary for transportation because of distance.) The interviewer was about to suggest a conditional benefits agreement when Mr. Hooper volunteered the information that he only expected to have the second car for about 2 more weeks since his neighbor had agreed to buy it and Mr. Hooper was confident that the transaction would be completed by November 1.

2. ANALYSIS

Based on Mr. Hooper's statements, the interviewer categorized the second vehicle as a “liquid” resource and documented the file accordingly. This established why neither conditional benefits (SI 01150.200 B.1.a.) nor the liquid resource verification tolerance (SI 01140.010 B.2.) could apply.

D. Operating Policy — Life Insurance

This subchapter provides no categorical assumption regarding the liquidity or nonliquidity of life insurance policies. However, solely for purposes of the liquid resources verification tolerance,treat life insurance as nonliquid (SI 01140.010 B.2.c.).


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0501110310
SI 01110.310 - Resources Assumed to be Nonliquid - 10/25/1990
Batch run: 01/27/2009
Rev:10/25/1990