VA Aid and Attendance Pension

  • MAXIMUM NET WORTH LIMIT OF $123,600
  1. There is a new net worth limit of $123,600 which will not fluctuate with age of life expectancy.
  2. The amount may change each year with a Cost of Living Adjustment (COLA).
  3. The Pension’s new net worth of $123,600 matches the current maximum Community Spouse Resource Allowance (CSRA) set by Congress of Medicaid.
  4. The VA defines net worth as annual income and assets.
  • THREE – YEAR LOOK BACK PERIOD
  1. Beginning October 18, 2018, the VA will look back 36 months from the date of application for any asset transfer to evaluate net worth.
  2. The VA will consider and may penalize the applicant for any assets transferred for less than market value during the “Look – Back”.
  3. Penalties will be no more than five years.
  • NEW RULES FOR FINANCIAL INSTRUMENTS SUCH AS ANNUITIES
  1. Beginning October 18, 2018, financial instruments and such as annuities and trust will be viewed differently. The purchase of any financial product (such as an annuity or trust) that reduces net worth and would not be in the claimant’s best interest other than to qualify for the pension, may be considered an asset transfer of less than fair market value.
  2. Overall, irrevocable trust can’t be used to reduce assets as they have in the past. If there is no value received for an asset transferred, it counts unless it was more than three years ago.
  3. Not all trust and annuities will be considered a transfer for less than market value. Transfers to annuities or trusts in which the claimant maintains control.