VA IMPROVED PENSION WITH AID & ATTENDANCE INFORMATION SEMINARPRESENTED BY NABORS LAW GROUP

AN ESTATE PLANNING FIRM THAT FOCUSES ON VA PENSION, MEDICAID PLANNING AND SPECIAL NEEDS PLANNING

AGENDA

Introduction

Introduction to VA Benefits

Cost of Care

Qualifications for the VA Pension

Proposed New Rules for VA Pension

Status of the Proposed Rules

Case Studies

VA BENEFITS

VA COMPENSATION*(Also known as Disability)

Provides monthly payments to Veterans that were injured during service.

Based on a disability rating provided by the VA.

Not tied to income or assets

VS.

VA PENSION*(Also known as Aid & Attendance)

Provides monthly payments to Veterans and their widow(er)s over 65 or permanently disabled.

Not based on an injury during wartime service. Does NOT require a disability rating.

Tied to the Veteran or Widow(er)’s Assets and Income.

*If a veteran qualifies for both VA Compensation and VA pension, they will receivethe higher of the two, not both.

VA PENSION BENEFITS (2015 AWARDS)Widow

Basic Improved Pension

Housebound

Aid and Attendance

Single Veteran

Basic Improved Pension

Housebound

Aid and Attendance

Veteran with one Dependent

Basic Improved Pension

Housebound

Aid and Attendance

Monthly

$719.00

$879.00

$1,149.00

$1,072.00

$1,310.00

$1,789.00

$1,404.00

$1,642.00

$2,120.00

Annual

$8,629.00

$10,547.00

$13,794.00

$12,867.00

$15,724.00

$21,466.00

$16,851.00

$19,709.00

$25,447.00

5 Years *

$43,146.00

$52,737.00

$68,968.00

$64,335.00

$78,619.00

$107,329.00

$84,253.00

$98,547.00

$127,237.00

* Based on the 2015 award amount; not including cost of living adjustments.

At Home Care Independent Living Assisted Living

Average Cost $3,432.00* $2,750.00** $2,880.00*

Average Social Security Benefit for 2015 $1,328.00 $1,328.00 $1,328.00

Average monthlyshortfall -$2,104.00 -$1,422.00 -$1,552.00

COST OF CARE

VA Pension Widow A&A $1,149.00 $1,149.00 $1,149.00

*2015 Genworth Financial cost of care survey**2012 Genworth Financial cost of care survey

New Monthly Average Shortfall $-955.00 $-273.00 $-403.00

VA WARTIME PENSION QUALIFICATIONS VETERAN

VETERAN QUALIFICATIONS

Served 90 consecutive days on active military duty

Received a discharge that was other than dishonorable

Served at least one day of active duty during a War Period*

WARTIME QUALIFYING PERIODS

Word War II: 12/07/1941 through 12/31/1946 inclusive

Korean War: 06/27/1950 through 01/31/1955 inclusive

Vietnam War: “Feet on Ground” in Vietnam from 02/28/1961 through 08/05/1964. Starting 08/06/1964 through 05/07/1975, you did not have to physically be in country to qualify.

Persian Gulf War: 08/02/1990 through (TBD)

VA WARTIME PENSION QUALIFICATIONS WIDOW(ER)

VETERAN QUALIFICATIONS

Served 90 consecutive days on active military duty

Received a discharge that was other than dishonorable

Served at least one day of active duty during a War Period*

WIDOW(ER) QUALIFICATIONS

Veteran the widow(er) is claiming benefits under must meet the veteran criteria

Married to veteran for at least 12 months or had a child with the veteran

Married to veteran at the time of the veteran’s death

Never remarried

VA PENSION ASSET AND INCOME REQUIREMENTS

Assets: property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

Examples: Home , Vehicles , Annuities, IRA, Checking, Savings , Insurance, Funeral Plans ......etc.

The Veteran, Widow(er) or Couple can have no more than $30,000.00 in countable assets(primary residence is excluded).

VA PENSION ASSET AND INCOME REQUIREMENTS

Income: money received, especially on a regular basis, for work or through investments.

Examples: Social Security, Pensions, Dividends etc.....

The Veteran or Widow(er) must have monthly unreimbursed medical expenses in excess of their monthly income.

EXAMPLE OF INCOME TEST FOR ASSISTED LIVINGGerald is an 85 year old World War II Veteran with an Honorable Discharge living in an Assisted Living Facility. To qualify for the VA Pension, Gerald’s monthly medical expenses, in this case the Assisted Living facility costs must be greater than his monthly income.

Gerald’s monthly income = $1,328.00 social security

$ 728.00 railroad pension

Total $2,056.00

Gerald’s monthly medical expenses = $ 104.90 Medicare B

$ 136.70 Secondary Medical Insurance

$ 4,000.00 Assisted Living Fees

Total $ 4,241.60

Monthly Income – Monthly Medical Expenses= $2,056.00 - $4,241.60 = -$2,085.60

EXAMPLE OF INCOME TEST FOR AT HOME CARE

Gerald is an 85 year old World War II Veteran with an Honorable Discharge living at hisDaughter’s home and receiving at home care. To qualify for the VA Pension, Gerald’s monthly medical expenses, in this case the home care costs must be greater than his monthly income.

Gerald’s monthly income = $1,328.00 social security

$ 728.00 railroad pension

Total $2,056.00

Gerald’s monthly medical expenses = $ 104.90 Medicare B

$ 136.70 Secondary Medical Insurance

$ 1,900.00 At Home Care Fees

Total $ 2,141.60

Monthly Income – Monthly Medical Expenses= $2,056.00 - $2,141.60 = -$85.60

CURRENT VA ASSET TRANSFER RULESAssets - the VA does not provide a specific amount

of assets a Veteran or Widow(er) may retain.

Although there is no stated amount, in practice we have found that the level is somewhere around $30,000.00.

Penalties - Currently a Veteran or Widow(er) can transfer assets without penalty

The Veteran or Widow(er) is qualified for the Pension the first day that the excessive assets are no longer in the Veteran or Widow(er)’s name.

PROPOSED VA ASSET AND TRANSFER RULES

On January 23, 2015 the VA published a comprehensive rule that would amend 38 CFR Part 3. Part 3 covers net worth, asset transfers and income exclusions for need based benefits like the VA Pension.

This rule was presented to the public for comments and the comments are currently being reviewed by the VA.

The changes are quite comprehensive and touch on a number of areas including net worth, asset transfers, medical expenses and income deductions.

PROPOSED VA ASSET AND TRANSFER RULES

Increase the net worth limit from our “guess” of $30,000.00 to a concrete value of $119,200.00* . This amount mirrors the Medicaid maximum community spouse resource allowance.

The amount is the same regardless of the age of the Veteran or Widow(er) or if they are married or single.

* This is the 2015 Spousal Impoverishment under Medicaid. This amount will increase by the same percentage as the cost of living for social security benefits.

PROPOSED VA ASSET AND TRANSFER RULES

Any transfer to a trust will be subject to a transfer penalty. This proposed rule does not distinguish between Revocable (A trust which the applicant controls the assets) and Irrevocable trusts (A trust which the applicant gives up all control of the assets).

The penalty can disqualify an applicant from receiving the VA Pension for up to a maximum of 10 years.

The penalty applies to all gifts made by the Veteran or Widow(er) within three years of when the application for benefits is filed.

PROPOSED VA ASSET AND TRANSFER RULES

The look back period is long and inclusive. The most innocent of transfers can be considered transfers that were made for the purpose of establishing VA Pension eligibility thus putting a penalty period on the the Veteran or Widow(er).

Example: Cash gifts given to children at birthdays and holidays for the last 3 years could cause them to be ineligible for pension benefits.

In many cases, transfers made due to fraud against the Veteran or Widow(er) are still penalized.

PROPOSED VA ASSET AND TRANSFER RULES

The purchase of an annuity, which is currently a strategy used to obtain VA benefits, will be doubly penalized.

The Veteran or Widow(er) will lose benefits due to a transfer penalty assessed on the amount of the annuity.

The value of the annuity will be considered an asset, putting the Veteran or Widow(er) above the asset limit.

Under current rules, the purchase of an annuity is not a transfer of assets and the annuity is not counted as an asset.

HOW DOES THIS AFFECT MY PATIENTS OR CLIENTS?

Right now these rules have not been implemented, but could be in the future. We will continueto keep you updated on any changes that will be happening.

For now we can transfer assets without penalties and we can continue to get our deserving Veteran or Widow(er)s the health care they need.

HOW DOES OUR FIRM HELP ATTAIN BENEFITS?We do not and can not get paid for helping the Veteran or Widow(er) fill out and submit his/her VA Application. We do this free of charge for our clients.

Then why come to a VA Pension Planning Firm?

Typically we see four types of cases:1. The Veteran or Widow(er) has been told by the VA that they do not qualify.2. The Veteran or Widow(er) has been denied by the VA either for too many assets or

the VA does not recognize their receipt of assistance with activities of daily living.3. The Veteran or Widow(er) finds the process cumbersome and is looking for assistance4. AND last but not least, the Veteran or Widow(er) did not know the benefit existed.

For cases 1-3 we can use one of our many legal tools and our years of experience to Qualify the Veteran or Widow(er) for the Pension.

We need your help for the 4th case!

For clients who do not qualify for this benefit, it is recommended to ask if they have a power of attorney with enhanced elder law powers.

What is the purpose of this presentation?

This is an underutilized benefit that many of our Veterans or their Widow(er)s should be receiving but are not.

Just to reiterate...let’s revisit the VA Pension Award amounts for 2015 and using these numbers calculate the annual and five year totals.

VA PENSION BENEFITS (2015 AWARDS)Widow

Basic Improved Pension

Housebound

Aid and Attendance

Single Veteran

Basic Improved Pension

Housebound

Aid and Attendance

Veteran with one Dependent

Basic Improved Pension

Housebound

Aid and Attendance

Monthly

$719.00

$879.00

$1,149.00

$1,072.00

$1,310.00

$1,789.00

$1,404.00

$1,642.00

$2,120.00

Annual

$8,629.00

$10,547.00

$13,794.00

$12,867.00

$15,724.00

$21,466.00

$16,851.00

$19,709.00

$25,447.00

5 Years TOTAL*

$43,146.00

$52,737.00

$68,968.00

$64,335.00

$78,619.00

$107,329.00

$84,253.00

$98,547.00

$127,237.00

* Based on the 2015 award amount, not including cost of living adjustments.

WE NEED YOR HELP TO SPREAD THE WORD!

Let us help you be a resource for your patients clients. You don’t need to know all the details we presented in this presentation, we’ll deal with that.

Ask your patients or clients if they or their spouse is/was a wartime Veteran. If the answer is yes, hand them the award pensionchart and they can call our office to schedule a free one hour consultationto determine if they are eligible and if so what steps need to betaken to be awarded the monthly tax free pension.

Join us on Thursday, June 18th at 12:00pm for a free lunch and an informative discussion about the VA Aid & Attendance Improved Pension.

VA IMPROVED PENSION WITH AID AND ATTENDANCE INFORMATION SEMINARJoin us on Thursday, June 18th at Noon for a discussion addressing:

What is the VA Improved Pension with Aid & Attendance and how can it help my Clients or Patients? How does a Veteran Qualify for the Pension? How much is the monthly award and what can it be used for? I heard the VA is changing the application criteria, how is this going to effect the VA Pension Award?

Where: Nabors Law GroupLenox Center 3355 Lenox Rd.10th floorAtlanta, GA 30326

When: Thursday, June 18th 12:00p.m.

What’s for Lunch? Publix sandwiches, sides and drinks

Where do I RSVP: Send an email to kristin@naborstrustlaw.com or click here.