Last time, in part 1 of our 3-part series on the Pension with Aid and Attendance Benefit, Brandon Thomson, a Probate Pro attorney, filled us in on the prerequisite qualifications.  Now, he’s put it all together for us with an illustrative example.

An Illustration

Robert, age 82, is a World War II veteran who is widowed. Robert’s monthly income consists of Social Security income of $1,500 per month. Robert was diagnosed last year with dementia and now lives in an assisted living facility as he needs help bathing, dressing, and taking his medication. The assisted living facility costs $3,000 per month. Robert has liquid assets totaling $100,000.

Robert’s IVAP (Income for VA Purposes):
Income $1,500
Unreimbursed recurring medical expenses $3,000
Total IVAP ($1500)

The maximum monthly benefit that Robert could qualify for is $1,830 of pension with an allowance for aid and attendance. Because Robert has a negative IVAP of $1,500, he is eligible for the full pension with aid and attendance benefit. However, his assets are too high. But because Robert has negative income of $1,500, one option may be to take a portion of his liquid assets and convert them into an income stream using an immediate annuity or promissory note. As long as Robert’s IVAP remains a negative number or $0, he can qualify for the full pension with aid and attendance amount. Another option is using a Veterans Asset Protection Trust, which we will go into detail about in the upcoming article.

Remember that surviving spouses can also qualify for the aid and attendance benefit. The amount of pension and benefits that you qualify for is based on a number of factors. Even if this scenario doesn’t match yours exactly, you should still reach out to an attorney to see if there is a way to get you qualified.

Next Up:  Join us Friday for part 3 of this important 3-part series on the Pension with Aid and Attendance Benefit where we’ll share with you how we can help.