This Policy Memorandum clarifies the definitions and accepted use, based on federal guidelines, of the terms resources, income and assets, as follows:
- Resources will be replacing the term assets. Resources are cash or other items having an exchange value and owned by the person. Resources have the capacity to be converted to cash for support and maintenance.
- Examples of resources: motor vehicles, bank accounts, stocks, bonds, property, cash on hand, cash value of life insurance, tools and equipment for self-employment, etc.
- Income is money or payment received by a person which he or she can apply, either directly or by sale or conversion, to meeting his or her basic needs. Income is commonly received in periodic payments, either monthly or at other scheduled, regular intervals.
- Examples of income: wages, Social Security benefits, contributions, unemployment insurance, etc.
As the manual is revised, the use of these terms will be updated to be consistent with their use in federal law.
Using the term resources to replace assets affects a large number of PM and WAG pages. Many of those pages are being updated in conjunction with a manual release entitled "LTC and Community AABD Changes including those to Comply with the Deficit Reduction Act of 2005 and the 2012 Illinois SMART Act."