Veterans Benefits
The Veterans Administration has issued new rules which drastically change the eligibility for Veterans and spouses to receive Aid & Attendance pension benefits. The VA has talked about changing the rules for a number of years, and had actually published proposed rules in 2015 only to withdraw them after a large number of unfavorable comments. The recently published rules went into effect on October 18, 2018.
The veteran, or his or her surviving spouse, must meet some basic requirements under the new and old rules. The veteran on whose service record the eligibility requirements are being based must have served at least one day during wartime (per dates set by Congress), served at least 90 days, and have been other than dishonorably discharged. Evidence of the service record and discharge date must be presented. The purpose of the benefit is to replace income that the veteran and/or the surviving spouse is using to pay for care. A good example is to help pay for care in personal care/assisted living facility.
Net Worth
• Asset limit: $123,600
• Net worth includes monthly income. Monthly income is multiplied by 12 and added to total assets.
• Certain medical expenses can be deducted from income (see below).
Look-Back and Penalty Periods
• 3 year (36 month) look-back period
• Penalty period assessed on asset transfers made during 3 year look-back
• Applicant can return assets and un-do a penalty period (in whole or in part) within 60 days of a penalty period decision
• Penalty period cannot exceed 5 years
• Transfers to a trust for a disabled child will not be penalized
Real Property
• Primary residence is excluded from net worth
• Acreage limit: Primary residence plus 2 acres is excluded. Additional acreage will be counted toward net worth unless it is unmarketable.
• Proceeds from the sale of real property, after benefit entitlement, will not be counted as an asset as long as the proceeds are used to purchase another property within the same calendar year.
Deductible Medical Expenses
Payments for meals, lodging, health care, custodial care and other services provided by a facility (assisted living, independent living, etc.) are deductible medical expenses as long as the Veteran:
• Resides in a facility that is staffed 24 hours/day
• Needs assistance with 2 Activities of Daily Living (ADLs)
Payment for assistance with Activities of Daily Living by an in-home attendant are medical expenses as long as the attendant provides the Veteran with health care or custodial care.
Northern Michigan Elder Law has attorneys accredited by the Office of General Counsel of the Department of Veteran’s Affairs and well-versed in navigating the processes for veteran’s benefits. The challenges that can arise while obtaining benefits are many, and we can assist you in every one of them: from obtaining documents if they have been lost, to structuring your assets to obtain eligibility, and even as far as the appeals process if you have been denied benefits. If you have questions about programs, we are here to help you. You have earned every benefit by serving your nation when you were called. Let us serve you in return.