Using Veterans’ Pensions to Pay for Long Term Senior Care

Definition	Qualifications	Costs
Pros & Cons	Benefit Types & Limits	How to Apply
Overview of Veterans' Pensions

• Search for Other Financial Options
  
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• Talk to an Ind. Vet Advisor
  
• Locate a VA Regional Office
  
• Find a Geriatric Care Manager to Help
  

Definition:

The VA Pension is a cash benefit paid to wartime veterans or their surviving spouses over the age of 65 that have limited income and net worth.

There are 3 levels to the program which provide an increasing benefit based on the existence or level of disability.

• Basic Pension – Veterans are eligible without a disability.
• Housebound – Veterans with a disability that prevents them from leaving their home.
• Aid & Attendance – Veterans that require skilled nursing or assisted living.

Note that veterans cannot receive both VA Disability compensation and VA Pension compensation, they must choose between the programs.

 

Pros & Cons:

The VA Pension is a great source of funds for financially constrained, wartime Veterans and/or their surviving spouses to use for their long term care. Many Veterans either don’t realize they are eligible or are unaware that they are eligible for a higher level of cash benefit. 

 

Eligibility is largely determined by the veteran’s income. The Veteran’s Administration allows individuals to deduct the cost of all their current medical expenses including assisted living or skilled nursing costs from their income. As a result, many senior veterans who did not previously qualify, might now qualify if long term care has become necessary and their medical expenses have increased. 

 

As a general rule, to qualify for VA Pensions a veteran’s assets cannot exceed $80,000. A home, used as a residence, vehicles and difficult-to-sell property are generally not included in determining the seniors’ assets. The VA also allows assets to be transferred or converted to income in order to pass the “asset test”. There is no look back penalty for transferring assets as there is with Medicaid. Meaning seniors can transfer assets out of their names and then apply without penalty. 

 

The Veterans’ Administration does not put restrictions on how pension benefits can be used. They can be applied toward skilled nursing, assisted living, at home or adult day care or to modify the home for better accessibility and safety.

 

Be Aware That:

Receiving a VA pension may disqualify a veteran that receives Medicaid benefits. Seniors receiving Medicaid should consult with a Veterans' benefits advisor prior to making the decision to initiate a VA pension.

 

Veterans' Pensions are Also Known As:

-Veterans Pension Program
-VA Pension for Veterans
-Improved Pension Program
-Aid & Attendance
-Housebound

Qualifications for Veterans' Pensions

Age Requirements

Veterans must be 65 to be eligible for the VA Pension program.

 

Disabilities / Health Requirements

The VA Pension provides different benefit amounts if the veteran (or their surviving spouse) has a disability and the level of severity of the disability.

• Basic Pension – Veterans are eligible without a disability.
• Housebound – Veterans with a disability rating of 100% that prevents them from leaving their home. Note that the disability does not have to be related to their military service.
• Aid & Attendance – Veterans that require help with the Activities of Daily Living (ADL) such as bathing, dressing and meal preparation or those in nursing homes and assisted living are eligible.

Family Status

Veterans or their surviving spouses are eligible for VA pensions. Although spouses will receive slightly lower cash benefits.
Widowed spouses that have re-married and then been widowed again are still eligible for their first spouse’s benefits.

 

Financial Status Requirements

The VA considers both a veteran’s “countable income” and their net worth to determine eligibility for the VA pension program.

Countable Income
The Veteran’s (and their spouse’s) countable income must be less than the pension amount for which they are eligible. For example, a married veteran in 2009 is eligible for around $15,000 in pension. If their countable income is $5,000, then they are eligible for $10,000 more in pension.

This table provides pension amounts / countable income limits for each type of VA Pension.

VA Improved Pension Maximum Countable Income for 2010
Veteran Family Status	Basic Pension	Housebound	Aid & Attendance
Veteran with no dependents	$11,820	$14,448	$119,728
Veteran with a spouse or child*	$15,492	$18,120	$23,888
Surviving spouse	$ 7,920	$ 9,684	$12,672
*Add $2,020 for each additional child

 

Net Worth
A veteran’s net worth, according to the VA, Includes assets in bank accounts, stocks, bonds, mutual funds and property other than the veteran's primary residence and vehicle.

Typically, the veteran’s combined assets must be less than $80,000. There is some flexibility here. The VA attempts to evaluate if the assets are substantial enough to live on for what they see as the veteran’s reasonable life expectancy.

Important, unlike Medicaid eligibility, the VA does not look back at assets transferred out of the veteran’s name in recent years. This enables veterans that exceed the net worth limit to transfer assets to their heirs and then qualify.  There are nuaces to doing this correctly and other methods to help gain qualification.  One may consider speaking with a Veteran's Benefit Advisor prior to application.

 

Veteran Status Requirements

Veterans cannot have been dishonorably discharged. Veterans must be considered “wartime veterans” meaning they served at least 90 days and served at least 1 day during the wartime dates below, but not necessarily in combat.

   -World War II: Dec 7, 1941 – Dec 31, 1946
   -Korean War: Jun 27, 1950 - Jan 31, 1955
   -Vietnam War: Aug 5, 1964 - May 7, 1975
   -Gulf War: Aug 2, 1990 - Undetermined

 

Geographic Requirements

The VA does not consider geographic location a factor in determining eligibility for VA pensions.

 

Other Requirements

Veterans cannot receive both VA Disability compensation and VA Pension compensation. However, a veteran may apply for the VA Pension and if approved, they can select the pension that provides the greater benefits.

Benefits of Veterans' Pensions

Types of Benefit Payout

VA Pensions are paid out by monthly checks. Checks amount equal the annual pension rate divided by 12.

 

Restrictions on How Payout Can be Used

There are no restrictions on how VA pension benefits can be used.

 

Benefits Amounts & Limits

The table below provides the VA's Maximum Annual Pension Rates (MAPR) for each level.

VA Improved Pension Maximum Annual Pension Rates for 2010
Veteran Family Status	Basic Pension	Housebound	Aid & Attendance
Veteran with no dependents	$11,820	$14,448	$19,728
Veteran with a spouse or child*	$15,492	$18,120	$23,888
Surviving spouse	$ 7,920	$ 9,684	$12,672
*Add $2,020 for each additional child

Time to Receive Benefits

The application processing time for VA Pension benefits can take up to 6 months.

 

This Source Can Help For

VA Pensions can be applied towards any purpose the veteran or their family desires including:

-In-home care
-Adult day care
-Assisted living / senior living
-Skilled nursing home care
-Alzheimer's / dementia care

Costs of Veterans' Pensions

There are no costs to apply for or enroll in a VA Pension.

How to Apply for Veterans' Pensions

The VA Pension application can be long and confusing. Processing an application can take 6 months. The VA provides Veteran Service Officers to help with basic questions. Amazon has several veterans’ benefits guidebooks that can help speed up the process.

Should a veteran be concerned they might not be eligible because they exceed the maximum allowable amount of financial resources, it is advisable to speak with a Veterans’ benefit advisor prior to application.

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The VA provides 3 different ways to apply for pension benefits.

1. Apply online using VONAPP at the VA web site Veterans should not use VONAPP if they: