Update on Veteran’s Aide and Attendance Benefits – Asset Transfer Penalties in the Future
There are no current asset transfers penalties in place for VA non-service related disability benefits commonly referred to as “Aide and Attendance”. However, the Veterans Administration intends on placing transfer restrictions on eligibility for Veterans non-service related pension benefits. There is no specific timetable on when any future transfer restrictions will be in place.
However, I am alerting you to this due to the window of opportunity available regarding planning prior to the implementation of any new transfer regulations.
Unfortunately, like several government programs, there are a few unscrupulous individuals who are attempting to abuse a very important government program to the detriment of others. In this case, the VA is attempting to crack down on very few advisors who prey on vulnerable seniors to sell them unsuitable investment products in order to qualify for Veterans benefits.
The Veterans Administration is absolutely correct to crack down on these unscrupulous individuals. However, the average Veteran will face more difficult eligibility requirements due to the future changes.
Below is a link to a recent article from the June 5, 2012 edition of the New York Times regarding the potential changes regarding Veterans Aide and Attendance Benefits, as well as a summary of a proposed bill form Senator Burr of North Carolina that has yet to be introduced on the Senate floor. Please note that the bill is only a first draft, and may be revised prior to submission. Although the final outcome of the VA transfer regulation changes are to be determined, please be aware that some form of changes are in the future. We will keep you updated as more information is obtained.
Due to the future VA transfer regulation changes, long-term care planning, including qualifying for Veterans benefits, will become more difficult and challenging. Please contact our office should you have any questions or would like assistance in planning for VA benefits or long term care in general.