VA Increases Pension Benefit Rates for 2019

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Veterans Pension Benefits have been given a Cost-of-Living-Adjustment for 2019.

Basic Improved Pension Rates for 2019

The Basic Improved Pension is for wartime veterans that are 65 years old or disabled. Based on the veteran’s finances, a single veteran can receive up to $1127 per month or $13,526 annually. A veteran with one dependent receives up to $1476 ($17,233 annually), and a veteran’s widow can receive up to $755 per month ($9,072 annually).

Veterans Housebound Pension Benefits for 2019

If a wartime veteran is eligible for housebound pension benefits, he or she can receive up to $1,378 per month ($16,533 annually). If the veteran has a dependent, then the amount increases to $1,726 per month ($20,723 annually). Widows under this benefit will receive $923 per month ($11,085 annually).

Veterans Aid & Attendance Benefits for 2019

For a wartime veteran to receive the Aid & Attendance level of benefits, he or she must general need assistance with two or more activities of daily living. Once qualified, the single veteran can receive up to $1,880 per month ($22,573 per year). With a dependent, the veteran will be entitled up to $2,230 per month ($26,763 per year). Widows at this level will receive up to $1,209 monthly ($14,507 per year).

Ff we can be of assistance in estate planning regarding your or your loved-one’s eligibility for VA Pension benefits, please give us a call.

Add Goff, VA Accredited Elder Law Attorney.

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VA Penalizes Veterans With New Rules — Making Lemonade Out of Lemons

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VA Pension Benefits are cash payments available to some wartime Veterans and their surviving spouses who are disabled and/or have additional medical needs. The Department of Veterans Affairs (VA)  recently set forth new eligibility requirements for applying. Those new rules went into effect October 18, 2018.   Although the rule changes penalize veterans by making eligibility and the concomitant estate planning more difficult, we are nonetheless taking an optimistic approach. We intend to make lemonade out of the lemons our veterans have been served.

VA Pension benefits are “needs-based” benefits. Before these new rules were made, the VA offered little guidance on how they determined whether an applicant was “in need” of the benefits.  There were vague definitions and limited explanations of who would qualify. Thish led to confusion among applicants and inconsistent determinations of eligibility.  However, one good thing that has come out of the change is that there are now clear rules for eligibility. Thus, elder law VA accredited attorneys can better advise their clients and their families. This upholds the integrity and consistency of the pension program.

In addition to the minimum active duty, wartime service, and age or disability requirements, there is now a bright-line rule regarding the net worth of an applicant. This amount is currently set at $123,600.00 (for 2018). The amount will increase annually. When calculating the net worth amount, assets are combined with annual income. (The applicant’s home is usually not included in this calculation.) Out-of-pocket medical expenses can reduce income, thus helping applicants qualify for the highest level of benefit.  Nonetheless, if the claimant’s net worth exceeds this threshold, an elder law lawyer can often utilize certain legal strategies to get the calculation within the allowed range.

Another issue with the new rules is that any asset that was transferred for less than fair market value during the 36-month period immediately preceding the application will result in a penalty of ineligibility of up to five years.  Of course, there are exceptions to this rule, and elder law attorneys, accredited by the VA, can often employ strategies to legally cure or avoid the penalty.

As the rules were aimed at stopping pension poachers (financial advisors and others going around attempting to sell annuities to veterans to try to qualify them for pension benefits), there are other provisions of the new rules that apply to annuities and other financial instruments. Accordingly, before investing in an annuity or other asset that produces income, be sure to contact our office to discuss the possible ramifications of that investment on VA pension benefits.

Although the new rules make it more difficult for many wartime veterans to qualify for the benefits they deserve, the rules do provide more certainty.  Give us a call if you would like to talk further about the changes, or to explore whether you or a loved one may qualify. We are here to serve those who have served.

Add Goff, VA Accredited Elder Law Attorney

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Financial Benefits for Veterans and their Survivors

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If you are a veteran, or if you are caring for one, it is important that you understand the many veterans’ benefits programs available through the Department of Veterans Affairs (VA). Financial support is often available to a a veteran, his or her spouse, veteran’s or their survivors based on the veteran’s current age, physical condition, or financial situation.

Even if you or the veteran under your care for qualifies for Medicare there can be advantages to choosing VA care for healthcare coverage. For example, Medicare does not cover physical exams and other preventative care, dental care, long-term in-home care or long-term nursing home residential care. The costs of VA co-pays and deductibles are generally lower than Medicare, and that includes prescription drugs. Some veterans can qualify for both Medicare and VA health coverage which can in some circumstances be extended to family members as well.  This is something that you should explore. 

The VA also offers financial benefits through “service-connected disabilities.” These disabilities can include physical, mental, or emotional conditions which limit or preclude a veteran from performing various everyday activities deemed normal. A veteran does not have to have become disabled while in the military to qualify for these benefits. Service-connected disabilities can begin during military service and only start to show as the veteran ages. The key element is that the disabling condition was caused during or aggravated by the veteran’s military service.

A condition that becomes disabling later in life can make a veteran eligible for a monthly disability compensation payment. The VA will assign a rating to the disabling condition beginning at 10 percent and up to 100 percent, in 10 percent increments. The lowest rating at 10 percent in 2018 pays $117 per month while the highest rating at 100 percent pays $2,527 a month. Veterans who are housebound or require “aid and attendance” (regular in-home care) can receive even more money per month. Older veterans with a 30 percent or higher rating can also have their spouse qualify for additional monthly benefits.

Having a service-connected disability also can make a veteran eligible  for certain  loans or grants to modify a home through the Specially Adapted Housing (SAH) grants program. This can be the veteran’s home or the home of a family member where the veteran lives. Special car modifications are available through a similar program. The VA also offers several types of loans and loan guarantees to aid veterans in the purchase of or refinancing of a home, townhome, or condominium.

If a veteran (65 or older) meets certain financial requirements, has had 90 or more active days of military service, and at least one of those days during a period of war (World War II, Korean War, Vietnam War and the Persian Gulf War), he or she may qualify for a VA pension even if the veteran was not in combat. If a wartime veteran or a surviving spouse requires care on a regular basis, the amount paid can be over $2,000 per month in tax-free income. However, there are specific financial and medical requirements for this benefit. The rules for qualifying for such a VA pension benefit are changing on October 18, 2018, so if you or someone you know is a wartime Veteran or the surviving spouse of a wartime Veteran, contact us right away to see if you could qualify for this important benefit before the qualification rules tighten.

If you are a wartime veteran or the surviving spouse of one, we would be happy to talk to you about your situation and help you understand your planning options as they relate to your qualification for a VA Service Pension. Add Goff is a VA accredited attorney, and  we look forward to hearing from you! Please help us get the word out by clicking one of the social media buttons below!