There are new proposed regulations that will drastically affect applicants of Aid and Attendance veteran benefits. The proposed regulations that would amend 38 CFR Part 3, will require a three-year look-back period of asset and asset transfers for each pension applicant and apply strict net worth limits on the veteran and his or her spouse.  Transfers to trusts, as well as purchase of annuities, under the new regs, will result in implementation of a transfer penalty; which could make an applicant ineligible for VA A&A benefits for up to 10 years.

What does that mean for you? Act now.

Aid and Attendance Benefits

Aid and Attendance pension applies to those veterans who require assistance with two or more activities of daily living. For more information about qualifications for Aid and Attendance, check out our recent blog posts.

Assets and Transfer

Today, Veterans Affairs only looks at the current amount of assets and income to determine a veteran eligible or ineligible to receive Aid and Attendance Benefits. That’s about to change.

When these regulations are enacted, they will include a three-year look-back period for applicants of both assets and asset transfers.

This could be the difference between qualifying or not qualifying for government assistance. Or, it could significantly reduce the amount of government assistance a veteran receives.

History of the Regulations

On January 23, 2015, the Veterans Administration published a comprehensive rule that would amend 38 CFR Part 3.  Part 3 covers net worth, asset transfers and income exclusions for needs-­‐based benefits.  The stated purpose of the proposed change was to “maintain the

Integrity of the pension program and to implement recent statutory changes” and to “respond to recent recommendations made by the Government Accountability Office (GAO), to maintain the

Integrity of VA’s needs-­‐based benefit programs, and to clarify and address issues necessary for the consistent adjudication of pension … claims.”

Much of this regulation is consistent with a bill proposed in Congress last year that made several similar changes to the pension act.

Act Now

Our advice to you? Act now, before it’s too late.

If you or a loved one is currently applying or thinking about applying for Aid and Attendance benefits, start working with a lawyer who specializes in Veterans planning. It could mean the difference between being eligible, or ineligible.

~ Ronald Morton