In Asset Protection
For those of you who are veterans or the spouse of a deceased veteran, Harris & Plottel, LLP can assist you in obtaining a monthly check from the Federal Veteran’s Administration commonly referred to as Veterans Aid & Attendance Benefits. We can navigate the various eligibility requirements for Veteran’s and Medi-Cal Planning because quite often they don’t go hand-in-hand. Most people do not take into consideration the conflicting requirements between Veterans and Medi-Cal Planning, nor do they consider the adverse effects improper planning can have on one’s estate plan, financial plan, or tax plan. Do not fall victim to unaccredited insurance salesmen requiring the purchase of an annuity in order to qualify. Each of the partners at Harris & Plottel, LLP are accredited attorneys by the Veteran’s Administration and can provide sound advice and strategies for you to qualify for these valuable benefits.
The Veteran’s Administration (VA) Non-Service Connected Pension with Aid & Attendance (A&A) provides benefits for eligible veterans and/or their surviving spouses who require the regular attendance of another person to assist in eating, bathing, dressing and undressing or taking care of the needs of nature. Individuals who are blind or are in an Assisted Living Facility may also qualify. Aid and Attendance is for applicants who need financial help for in–home care, to pay for an assisted living facility or a nursing home. It is a non–service connected disability benefit, meaning the disability does not have to be a result of service.
The A&A Pension can provide up to
The pension is paid to wartime veterans who have limited or no income and who are at least 65 years old or, if under 65, are permanently or totally disabled. There are also “Death Pensions,” which are needs based for a surviving spouse of a deceased wartime veteran who has not remarried.
A veteran or the veteran’s surviving spouse may be eligible if the veteran:
If the veteran entered active duty after September 7, 1980, generally he/she must have served at least 24 months or the full period for which called or ordered to active duty (there are exceptions to this rule). Most National Guard service does not qualify as active service, although there are limited exceptions.
Veterans, spouses of veterans or surviving spouses can be eligible for Aid and Attendance benefits if they meet the following disability requirements:
The claimant’s countable family income must be below a yearly limit set by law. Countable Income means income received by the claimant and his or her dependents. It includes earnings, disability and retirement payments, interest and dividends, and net income from farming or business. A claimant must report all income, but the VA will exclude any income that the law allows. Public assistance, like SSI, is not counted as part of countable income. The annual income limits for the Aid and Attendance program are higher than those set for the basic pension. The maximum Aid and Attendance benefit that can be paid monthly to a single veteran is $1,704, but the veteran must have countable income of $0 to receive the maximum benefit.
|Aid and Attendance Maximum Annual Pension|
Rate (MAPR) Category
|Basic Pension MAPR||5% of Basic Pension MAPR||Annual Aid and Attendance Pension Rate|
($1,021 per month)
($1,704 per month)
|Veteran with Spouse/|
($1,337 per month)
($2,020 per month)
|Two Veterans Married to|
$1,337 per month)
($2,631 per month)
($684 per month)
($1,094 per month)
|Surviving Spouse with|
($896 per month)
($1,306 per month)
A portion of unreimbursed medical expenses paid by claimants may reduce the countable income. Unreimbursed medical expenses include: cost of a long term care institution or assisted living, health related insurance premiums (including Medicare premiums), diabetic supplies, private caregivers, incontinence supplies, prescriptions and dialysis not covered by any other health plan. Only the portion of the unreimbursed medical expenses that exceed 5% of the basic pension MAPR may be deducted (see above chart for this amount).
For Example: Vivian resides at an assisted living facility. Her income is $12,000.00 per year from Social Security. Her children help pay for the assisted living cost of about $4,000.oo per month. Thus, Vivian’s unreimbursed medical expenses are $4,000.00 per month or $48,000.00 per year. In Vivian’s case, she would have countable income of $0 and would be eligible for the maximum benefit of $1,094 to help pay for the assisted living facility calculated as follows:
Net Worth (the value of your assets) also affects eligibility. VA pensions are a need–based benefit, and a large net worth might affect your eligibility. All personal goods are exempt from the net worth. These goods include the home you live in, a vehicle used for the care of the claimant, and household goods and personal effects such as clothes, jewelry and furniture. Unfortunately, there is no asset limit set by law, and the determination of eligibility can be made at the discretion of a VA caseworker.
In the community: Aid and Attendance payments are not counted as income for Medi-Cal or IHSS purposes for those beneficiaries who reside at home (not in an institution). However, the basic pension does count as income.
In a Nursing Home: If you are in nursing home under Medi-Cal, you are allowed to keep $35 out of your monthly income for personal needs. If you receive Aid and Attendance benefits, you will be allowed to keep an additional $90 ($125 total) for the monthly personal needs allowance; the remaining Aid and Attendance payments will be counted as income and will need to be paid as part of your monthly share of cost, unless there is a community spouse or dependent child at home.