The Department of Veterans Affairs estimates that only 5% of those entitled to receive Veterans Benefits, including spouses and dependent children, actually receive them.
VA benefits are particularly useful for World War II, Korean War and Vietnam War era veterans struggling with the enormous cost of long term care at home, in an independent living facility, in an assisted living facility or in a nursing home.
Unfortunately the eligibility rules can be rather complicated, especially for the uninitiated or inexperienced. Below, you will find some of the basic eligibility guidelines.
Initial Benefit Eligibility
In order to be eligible for benefits, the individual must be 1.) a veteran, 2.) the spouse of a veteran or 3.) the dependent child of a veteran. Dependent adult children will qualify for benefits in most circumstances provided they were incapable of self support prior to the age of 18.
The qualifying veteran must have been discharged from the service under other than dishonorable conditions, must have served at least 90 days, and must have served at least one day during a war time period.
Countable Yearly Income
The veteran’s countable yearly income must be below a yearly limit set by Congress. Countable yearly income is different than income as usually understood by most people, and it is subject to change based on planning techniques employed. For instance, countable yearly income is reduced by the amount of unreimbursed medical expenses in a given year, which in turn includes all payment for an assisted living facility, prescription drugs, medical devices, etc.
Asset Test
There is also an asset test, which is also subject to change based on planning strategies employed. Prior to filing an application, the applicant ought to have a net worth less than $80,000 not including a homestead property, a car, typical personal property, and a prepaid burial contract. The asset test is considered on a case by case basis by the VA. Under certain circumstances, it is advisable to reduce countable assets substantially below the $80,000 threshold by the use of a number of VA Benefits planning techniques.
Other benefits
“Aid & Attendance Benefits”
In addition to the ordinary monthly pension benefit amount, an additional benefit in the form of Aid & Attendance is available to the Veteran, the Veteran’s spouse and any eligible dependents if the Veteran or eligible dependent 1.) requires the aid of another person to perform personal functions required in everyday living, such as bathing, feeding, dressing, attending to the wants of nature, adjusting prosthetic devices, or protecting himself/herself form the hazards of his/her daily environment or 2.) is bedridden, or 3.) is in a nursing home due to mental or physical incapacity or 4.) is blind or so nearly blind as to have corrected vision of 5/200 in both eyes.
“Housebound Benefits”
In addition to the ordinary monthly pension benefit amount (but not in addition to any Aid & Attendance amount), a veteran or dependent substantially confined to his or her immediate premises because of permanent disability is entitled to a Housebound Benefit.
Maximum Benefits
The current maximum benefit rates for Aid and Attendance (includes ordinary pension benefit) are:
Single Veteran: $1,664 per month ($19,736 per year)
Married Veteran: $1,949 per month ($23,396 per year)
Widowed Spouse: $1056 per month ($12,681 per year)
Veteran Married to Veteran: $2,540 per month ($30,480 per year)
To put these benefit figures in perspective, a typical independent living facility or assisted living facility will cost somewhere between $2,000 and $4,000 per month depending on a variety of factors. For a veteran and spouse with monthly income of $3,000 and a monthly assisted living facility bill of $3,500, this benefit is vitally important. With proper planning and a well developed application, they will be able to go from consuming $500 of savings per month to having approximately $1,500 of extra income each month after the assisted living bill has been paid.
Michael A. Chiantella is proud to offer counsel and advice concerning eligibility and proper positioning of assets prior to filing a VA pension or aid and attendance claim. From time to time, Mr. Chiantella holds complimentary seminars to further explain VA benefits and associated planning possibilities. To take advantage of this opportunity at his next event, please contact our office at (941) 488-1779.