VA Makes it More Difficult for Veterans to Qualify for Long Term Care Benefits | Horizon Elder Law & Estate Planning Blog
VA Benefits - What’s Changed?
Veterans and their eligible spouses can receive aid and attendance benefits, which provide assistance at home for things like bathing, dressing, and other activities of daily living. Veterans seeking these benefits are now faced with:
a “look-back period”
Prior to the change, veterans typically qualified if they had less than $80,000 in income and assets. Though, they were never specified, this seems to be the number most commonly used. Unlike Medicaid, there were no penalties for applicants who recently divested themselves from assets so that they could qualify.
With the new rule in place, veterans are now limited to a net worth of $123,600. This includes both income and assets. Certain assets will not count towards this limit, such as a home on up to 2-acres, even if the veteran is living in a nursing home. Medical expenses and payments to assisted living facilities may also be deducted from income under the new rule.
Additionally, the VA has initiated a 3-year look-back period. This means that to apply for aid and attendance benefits, applicants must reveal all financial transactions that they were involved in for three years prior to the application. If it is found that the applicant did in fact transfer assets in order to place themselves below the income limit, they will be banned from VA benefits for 5-years.
There are some exceptions to the rules against divesting, which include:
transferring assets into a trust for a child who is unable to “self-support”
gifts and transfers not made at market value
The new VA benefits rule goes into effect on October 18, 2018. The VA will not look at transfers prior to that date, so it may be worthwhile to talk with a veterans benefits attorney as soon as possible to determine the best way to qualify for aid and attendance benefits. Contact the Horizon veteran’s benefits attorneys today to schedule a consult.