F-4000, Liquid and Nonliquid Resources

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Revision 20-1; Effective March 1, 2020

Resources generally are categorized as either "liquid" or "nonliquid." The difference between the two types of resources is important when determining if a resource can be excluded as non-business property essential to self-support. See Section F-4300, Resources Essential to Self-Support.

Liquid resources are cash or other assets, which can be converted to cash within 20 workdays.

Nonliquid resources consist of real and personal property, as well as financial instruments that cannot be converted to cash within 20 workdays (excluding holidays).

Ownership of real or personal property can include either sole possession or a partial interest.

Real property includes, but is not limited to:

  • land;
  • houses or immovable objects permanently attached to the land, whether associated with the home or separate from the home;
  • mineral rights;
  • burial spaces; and
  • life estates.

Personal property includes, but is not limited to:

  • automobiles and other motor vehicles,
  • household goods and personal effects, and
  • insurance.

Equity is the fair market value of the resource minus all money owed on it. Evaluate nonliquid resources, with the exception of some automobiles, according to their equity value.