The Veterans Aid and Attendance Pension Program is a wonderful benefit for veterans who served in wartime. It provides assistance with the cost of home care or living facilities. Last year new rules regarding eligibility for this program were implemented. The information below provides an overview of the program and focuses on the improved benefit and the new “look-back” period for those who transfer assets on or after October 18, 2018. The new ruling is complex for the average applicant. For those veterans who are applying for benefits it may be worthwhile to consult with an Elder Law Attorney who has experience in this specialized area.
Background:
Many veterans and their families are unaware of the Veterans Aid and Attendance Pension benefit. It is a ‘needs-based’ benefit that is paid to certain veterans and their survivors.
Eligibility:
There are three components for eligibility. They are:
Qualifying Military Service:
The veteran must have served at least 90 days of active duty with at least one day during “wartime,” defined:
- WWII – December 7, 1941 to December 31, 1946
- Korean Conflict – June 27, 1950 to January 31, 1955
- Vietnam Era – August 5, 1964 to May 7, 1975; February 28, 1961, for veterans who served “in country” before August 4, 1964
- Gulf War – August 2, 1990 to a date yet to be set by law or Presidential proclamation
The veteran must have an Honorable or General (Under Honorable Conditions) discharge.
If the veteran entered the service after September 7, 1980, he or she must have served a minimum of 24 months of continuous active duty (with some exceptions).
The veteran/widow must be at least 65; if under 65 he or she must be totally disabled. Medical evidence must be submitted. For a single surviving spouse applying for a Death Pension benefit, the deceased veteran does not have to meet any disability or age requirements nor does the surviving spouse need to meet any disability requirements, regardless of his or her age. The surviving spouse must have been married to the veteran at the veteran’s death, must be single at the time of application and cannot have remarried after November 1, 1990. A medical need for assistance or supervision due to disability in most cases is critical to getting or not getting the pension benefit.
Medical Necessity:
Assistance by another person with two “Activities of Daily Living” (ADLs): bathing, eating, dressing, toileting, ambulating and/or hygiene. The program now includes “Instrumental Activities of Daily Living” (IADLs). It also includes adjusting prosthetic devices and is available to those in this group who are blind. The rules now state when residence at a care facility other than a nursing home could be considered as a medical expense.
Financial Eligibility:
Income: The household income of the veteran and/or the surviving spouse cannot exceed the Maximum Allowable Pension Rate (MAPR) for that category of application. Generally, the household non-reimbursed medical expenses must exceed or come close to the total annual household gross income.
Net Worth:
Generally, assets cannot exceed $123,600, excluding home, vehicles and personal property (see below).
2018 Maximum Benefit Amounts – Per Month for Qualifying Veterans:
Single veteran $1,830
Surviving spouse $1,176
Married veteran $2,169
Two married veterans who both need the benefit $2,903
New Look Back Period
The biggest change to the program is the “look back” period executed on October 18, 2018. As of that date the VA imposed a 36 month “look-back” period which means that anyone who applies on or after that date must disclose any asset transfer that occurred within the prior 36 months. The amount of transfer that is subject to a penalty is defined as the “Covered Asset.” The Covered Asset is the asset that was part of the applicant’s net worth ($123,600). All gifts if assets within the look-back period will be presumed to be with the intent of qualifying for the pension and will be subject to the penalty. The MAPR is used to calculate the penalty. The current rate is $2,169.
The new ruling is complex for the average applicant. For those veterans who are applying for benefits it may be worthwhile to consult with an Elder Law Attorney who has experience in this specialized area. Our website provides some elder attorneys in the southeast Florida area.
