Legal Matters

Tax-Free Veteran's Venefits

If you have never heard about the VA’s Aide and Attendant Care program (VA-A&A), you are not alone. This program pays a monthly benefit to wartime veterans or their widow(er) of up to $2,295 – TAX FREE! To receive VA-A&A, the veteran, or their widow(er) must prove eligibility.

Service Test

The first test requires proof that one served in the active military during wartime for the required length of time and received a discharge that was other than dishonorable. You can find the wartime periods at the VA’s website at www.va.gov/pension/eligibility/.

Income Test

The second eligibility test requires proof that one’s adjusted income (gross income minus unreimbursed medical expenses, such as attendants, assisted living, incontinence supplies, etc.) must be less than the maximum benefit amount. For example, Income = $7,000 per month. Memory Care = $6,000 per month. The “adjusted income” is $1,000 ($7,000 - $6,000 = $1,000). As $1,000 is less than the maximum benefit, the veteran or their surviving spouse passes the income test.

Net Worth Test

The final eligibility test is proof that one’s net worth is below $130,733. Maximum net worth includes annual income from all sources and the value of assets minus debt. However, your residence, vehicle(s), prepaid burial, and personal effects are not counted. So, if one’s annual income is $24,000, and has about $100,000 in bank accounts and investments, then the veteran or surviving spouse passes the Net Worth Test because $124,000 is less than $130,733. But if you have too much money, a lawyer who is familiar with the VA’s rules should be able to help you qualify, even though your assets are too high.

Conclusion: Proving eligibility for VA-A&A is difficult. Seek professional help.

Scott Selis, Elder Law Attorney, estate planning, probate, long-term care, government benefits, (Medicaid, Veteran’s benefits). Scott was Assistant Chair of Florida Bar’s Elder Law section, and Elder Law Attorney of the Year 2016.