VA Pension Benefits

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NJ INSTITUTE FOR CONTINUING LEGAL
EDUCATIONA Lawyers Guide to the Law Affecting
Veterans and the Military APRIL 25, 2017VA
PENSION BENEFITSPresented by
Donald D. Vanarelli, Esq.Accredited VA
Attorney Certified Elder Law Attorney Founding
Member, Assn. of Special Needs PlannersNamed to
the NJ Super Lawyer list, 2007 - Present
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VA Benefits in General

• Benefits provided by the Department of Veterans
  Affairs (VA) range from healthcare, compensation
  and adaptive housing grants for
  service-connected disabilities, needs-based
  pensions, education, vocational training, home
  loan guarantees, life insurance, and burial and
  memorial benefits.

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VA Benefits in General (contd)
Certain VA benefits are also provided to eligible
dependents and survivors of veterans.
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Veterans Health Administration (VHA)
Purpose To provide health care primarily for
the benefit of veterans with service-connected
disabilities, combat veterans, and low-income
veterans.
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Veterans Health Administration (VHA) (contd)
Programs include -- VA Hospitals (163
hospitals) -- VA Nursing Homes (137 nursing
homes) -- Information Resource
Centers -- Inpatient and Outpatient Clinics (850
Outpatient Clinics) -- Domiciliary, Home
Health, Adult Day Care, Residential/Respite Care
Programs
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Veterans Benefits Administration (VBA)
The VBA provides an integrated program of
veterans benefits. The major benefits
include -- Compensation (for service
- connected disabilities) -- Compensation for
surviving spouses and dependents of
deceased veterans -- Burial Benefits
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Veterans Benefits Administration (VBA) (contd)
-- Rehabilitation assistance -- Home Loans --
Specially-adapted housing -- Pension (for
non-service connected disabilities)
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Overview of Major Disability Benefits Programs

• Service-Connected Compensation
• Disability compensation is a monetary benefit for
  veterans who are disabled by an injury or disease
  that was incurred or aggravated during active
  service.

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Overview of Major Disability Benefits Programs
(contd)

• Needs-Based Pension
• Pension is a monetary benefit for veterans who
  (1) are disabled (2) have low income and
  resources, and (3) served during a period of
  wartime.

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Non-Service Connected Benefits VA Improved
Pension Program

• Not dependent upon serviceconnected disability
  to qualify.
• Assists families who need additional monies to
  help care for ailing veterans who have low income
  and resources.
• VAs version of SSI benefits.
• Spouse is not eligible if veteran is living.

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VA Improved Pension ProgramThree Tiers of
Benefits

• 1. Low Income Pension
• 2. Housebound Benefits
• Aid and Attendance Benefits

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VA Improved Pension ProgramThree Tiers of
Benefits (contd)
Housebound benefits and Aid and Attendance
benefits are supplements paid in addition to the
basic Low Income Pension to certain veterans to
cover the additional costs of care for their
added disabilities.
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Basic Eligibility Criteria for VA Improved
Pension Program
All of the following criteria must be met before
a veteran or widow(er) of a veteran can receive
Improved Pension benefits a. The veteran must
have served at least 90 days of active duty
service, one day of which must have been during a
wartime period
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Basic Eligibility Criteria for VA Improved
Pension Program (contd.)
In general, wartime is World War I World War
IIDec. 7, 1941 Dec. 31, 1946 Korean WarJune
27, 1950 Jan. 31, 1955 Vietnam War Aug. 5,
1964 May 7, 1975 Gulf War August 2, 1990
through date to be set by law by Presidential
Proclamation
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Basic Eligibility Criteria for VA Improved
Pension Program (contd.)
b. The veteran must have received a discharge
other than dishonorable c. The claimant must
have limited income and assets and, d. The
claimant must be permanently and totally
disabled, or be over age 65.
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COUNTABLE INCOME
Countable income for VA purposes (IVAP)
includes income from most sources, including
earnings, disability and retirement payments,
interest and dividend payments from annuities,
net income from farming or business, waived
income and income from joint accounts (in
proportion to ownership interest).
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excluded from countable income
Public assistance such as SSI, IRA interest,
income tax refunds, loans (including reverse
mortgages), insurance dividends, life insurance
proceeds representing a return of premiums, and
profit from the sale of property (other than from
a regular business).
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EXAMPLE
As of December 1, 2016, the income eligibility
limit ( Maximum Annual Pension Rate or MAPR)
for a single veteran w/o children is less than
12,907. Medical expenses may be deducted from
countable income if they exceed 5 of the income
limit (645, for the single veteran w/o
children).
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Excess Income
Although most veterans have income that exceeds
the permissible family income limits,
unreimbursed medical expenses paid by the
claimant may be used to reduce the claimants
countable income. Unreimbursed medical expenses
that may reduce income include doctors fees,
dentists fees, prescription glasses, Medicare
premium deductions and co-payments, prescription
medications, health insurance premiums,
transportation to physician offices, therapy, and
funeral expenses.
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Excess Income (contd)
The most beneficial unreimbursed expenses that
may reduce countable income are the costs of home
health care, assisted living facilities, or
nursing homes.
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Net Worth Standard
The VA considers the net worth of the individual
seeking benefits, excluding the value of the
persons home, furnishings, and car. The
standard as to whether a person will be eligible
for benefits is whether the person has
sufficient means to pay for his or her care.
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Net Worth Standard (contd)
Assets that are counted toward the sufficient
means analysis include bank accounts,
certificates of deposit, money market accounts,
investment accounts, annuities, retirement
accounts, life insurance cash surrender values,
etc.
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How Much Does VA Pay?
VA pays the difference between the maximum annual
pension rate (MAPR), a yearly limit set by
Congress, and the veterans countable family
income. This difference is generally paid in 12
equal monthly payments rounded down to the
nearest dollar.
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Planning For VA Pension Eligibility

• Retitle assets to joint names (joint owner not
  in
• veterans household)
• Gift assets (donee not in veterans household)
• Transfers with retained life estate not
  recognized
• Assets in SNT are countable
• Personal Services Contract
• Caveat Medicaid transfer rules are different!

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Look-Back Period For VA Pension Eligibility

• Currently, there is no look-back period.
• GAO recently recommended that Congress establish
  asset transfer look-back period, with associated
  penalties, for non-service connected pension
  applicants.

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VA Improved Pension Program Housebound Benefits

• Pension benefits with a Housebound supplement are
  available to a veteran or widow(er) of a veteran
  who is disabled (or over age 65), confined to the
  home and financially eligible.

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VA Improved Pension ProgramAid and Attendance

• Available to eligible veterans and surviving
  spouses who require the regular attendance of a
  person to assist them in eating, dressing,
  undressing or taking care of the needs of nature.
• Also includes individuals who are blind, in a
  nursing home because of mental or physical
  incapacity.

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VA Improved Pension ProgramAid and Attendance
To qualify medically, a veteran or surviving
spouse must meet one of the following
conditions 1. Is bedridden, or 2. Requires the
aid of another person to perform activities of
daily living
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VA Improved Pension ProgramAid and Attendance
(contd)
3. Is a nursing home resident, as a result of a
mental or physical incapacity, or 4. Is blind or
nearly blind in both eyes.
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The Medicaid Effect
Since both Housebound and AA Benefits are
supplements to the basic Low Income Pension, the
supplemental benefits are exempt when determining
the veterans eligibility for ALF Medicaid. Low
Income pension may be exempt in determining
Medicaid eligibility when UMEs exceed the Low
Income Pension benefit amount.
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The Medicaid Effect (cont.)
If a claimant is in a NH or ALF receiving
Medicaid, the VA pension benefits payable is
reduced to 90 per month.
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Accreditation by the VA
As of June 23, 2008, the VA began REQUIRING that
ANYONE who assists a veteran or family member
with the preparation, presentation and
prosecution of a claim for benefits be accredited
by and through the VA BEFORE they can legally
provide assistance.
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Who Can Charge Fees, and When?
Veterans may obtain free assistance with
completing an application for benefits from
accredited veteran services organizations and
others who are accredited. No organization nor
individual, including lawyers, can charge for the
preparation, presentation, and prosecution of an
initial claim.
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Who Can Charge Fees, and When? (contd)
But, if a claim is denied or approved for fewer
benefits than are expected, a claimant may hire
and pay an accredited attorney or other
accredited representative to assist with an
appeal after a Notice of Disagreement has been
filed.
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Who Can Charge Fees, and When? (contd)
Only accredited agents and attorneys may receive
fees from claimants for services provided in
connection with representation.
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THANK YOU FOR ATTENDING Questions/Comments?