4 Minute Read
The U.S. Department of Veterans Affairs (“VA”) offers needs-based pension benefits for a qualifying veteran or the widow or widower of a qualifying veteran who may need assistance with living and care costs. In many situations, a veteran may qualify for an enhanced pension with Aid and Attendance (“A&A”) benefits, which provides additional pension benefits that can be used to afford the veteran or the widow or widower additional funds for care in the home or to offset the cost of an assisted living facility, adult foster care home, or home for the aged. The attraction of this benefit is that it provides additional assistance for those who meet the applicable qualifications and does not require that the recipient be in a nursing home.
VA pension benefits (or enhanced pension with A&A) are only available if the veteran meets VA requirements regarding: (a) service; (b) condition; (c) assets; and (d) income.
Service Eligibility
A veteran’s service qualifies for VA pension benefits only if the veteran was not dishonorably discharged and the veteran meets at least one of the following:
- started on active duty before September 8, 1980, and served at least 90 days on active duty with at least 1 day during wartime;
- started on active duty as an enlisted person after September 7, 1980, and served at least 24 months or the full period for which the veteran was called or ordered to active duty (with some exceptions) with at least 1 day during wartime; or
- was an officer and started on active duty after October 16, 1981, and hadn’t previously served on active duty for at least 24 months.
Condition Eligibility
For a basic pension, the applicant must meet one of the following requirements:
- be age 65 or older;
- be totally and permanently disabled;
- be a patient in a nursing home receiving skilled nursing care;
- be receiving Social Security Disability Insurance; or
- be receiving Supplemental Security Income. In order to qualify for enhanced A&A benefits, the applicant must also require the aid of another person in order to perform personal functions required in everyday living, such as bathing, feeding, dressing, etc., or inability to monitor his/her own medications. Note that if a person has been diagnosed with dementia, a fiduciary will likely need to be appointed on the veteran’s behalf.
Assets Eligibility
An applicant is eligible for VA pension benefits if he/she has no more than $159,240.00 worth of assets (as of December 1, 2024), excluding certain assets such as his/her home. However, there is a penalty period imposed for giving assets away to become eligible. The VA published changes in the regulations in 2018 which impose a three-year “look back” period for gifts or other “divestments” of assets. This penalty potentially applies to transfers of assets through trusts, annuities and gifts and could result in a monthly period of ineligibility equal to the amount divested divided by the applicable monthly maximum annual pension rate.
Income Eligibility
An applicant is entitled to receive VA pension benefits of up to a maximum annual pension rate that varies based on the type of pension, marital status, and number of dependents. For example, the maximum VA pension benefits for a single applicant, without dependents or A&A enhanced benefits, is approximately $1,413.75 per month. With the A&A enhancement, the maximum VA pensions benefits for a single applicant with no dependents increases to $2,358.33 per month (both as of December 1, 2024).
However, this maximum pension benefit may be reduced if the applicant has other income in excess of his/her unreimbursed medical expenses (that exceed 5% of the applicant’s maximum annual pension rate). However, there may be planning opportunities available to help the applicant maximize the amount of VA benefits he/she is entitled to, potentially up to the maximum pension rate.
This is just a brief overview of U.S. Department of Veterans Affairs needs-based pension benefits and enhanced pensions with Aid and Attendance and does not discuss all pensions and/or needs-based benefits that may be available. It should only be used as an illustrative example to familiarize yourself with the general concepts in this complicated area. If you have any questions regarding benefits that may potentially be available to help fund long-term care for yourself or other individual, we encourage you to contact a Morello Law Group, P.C. attorney.