On September 18, the Department of Veteran Affairs (VA) issued major changes to its Veterans Pension, including “Aid and Attendance,” and other needs-based benefits.
You can protect your assets without any penalty if you act now.
This is a major change and understanding its full impact on veterans who need long-term services and supports (LTSS) will take time.
By law, veterans who served during wartime, or their spouse, may qualify for a needs-based pension. Those who require LTSS may qualify for an enhancement known as “Aid and Attendance.” Aid and Attendance benefits can pay a little more than $2,000 a month at its maximum.
Individuals in need of LTSS pay on average $7,148 a month for a semi-private nursing home room and $3,750 a month in an assisted living facility. While Aid and Attendance cannot cover all LTSS expenses, it can help to offset them. The benefit has helped many Veterans and their spouses pay for LTSS without needing to impoverish themselves for Medicaid.
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
· Certain types of trusts 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.
