Assets vs Resources

Assets vs Resources. A. Not everything a person owns (assets) are resources for Medicaid purposes. As previously indicated, a resource is cash or other real or personal property that an individual (or spouse, if any): 1. Owns, 2. Has the right, authority or power to convert to cash, (if not already cash), 3. Is not legally restricted from using for his support or maintenance. B. 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: 1. An asset that is not a resource does not count against the resource limit (while a resource may count); and 2. 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; however, 3. What a person receives from a non-resource is subject to evaluation as income at the time of receipt. For 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.