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What is a veteran’s federal fiduciary, and does
that affect the application?
For a veteran who is considered incompetent to
handle his own financial affairs, VA will appoint a fiduciary to
receive the money and pay the bills. A federal fiduciary is an
individual appointed for this purpose, usually a spouse or a
family member. In most cases -- except for the spouse living with
the veteran -- there is an interview required and mounds of
paperwork. This process can take a long time, and it is to the
advantage of the person filing an original claim to request the
appointment of himself or herself as a fiduciary or for some other
appropriate person or organization to help expedite the process.
VA always makes the final decision on whom it appoints as a
fiduciary. In fact, the agency might well ignore court appointed
fiduciaries. In general, the decision favors declaring the veteran
competent and avoiding a fiduciary where at all possible.
What is the VA income test for pension?
If the household income adjusted for
unreimbursed medical expenses and a deductible is greater than the
maximum allowable pension rate -- MAPR -- there is no benefit. In
2007, the maximum allowable rate for a couple with aid and
attendance allowance is $21,615 a year. For a single it is $18,234
a year. Without aid and attendance or housebound allowance the
maximum couple's rate is $14,313 a year and for a single it is
$10,929 a year. Death pension rates are lower. People seeking a
benefit with adjusted incomes greater than these levels will be
denied.
Can a household with income above the maximum
limit qualify for VA pension?
A quirk in the way benefits are calculated can
allow individuals and couples earning between $24,000 to $60,000 a
year to still qualify for a benefit. It has to do with the
treatment by VA of the very large recurring medical costs
associated with home care, assisted living, or nursing home care.
What is the VA pension household asset test, and
what can be done if the asset test is not met?
As a general rule assets cannot exceed $80,000.
A veteran or spouse occupied-house, a reasonable amount of land
upon which it sits and a vehicle are exempt from the asset test.
In reality there is no specific test in the regulations. Veterans
service representatives are required to file paperwork justifying
their decision if they allow assets greater than $80,000. Thus
this amount has become a traditional ceiling. The service
representative is encouraged to analyze the veteran's household
needs for maintenance and weigh those needs against assets that
can be readily converted to cash. In the end, the decision as to
allowable assets is a subjective decision made by a service
representative. In certain cases a benefit award could be denied
even if assets are below $20,000 or $10,000 or even zero dollars.
There are legal ways to get around the asset test if assets are
too high. These are described in our book.
What proofs and documents are required with the
VA pension claim?
We have already discussed the requirements for
power of attorney and fiduciary if they apply. In addition, an
original copy of the discharge from service -- typically DD 214 or
form WD -- is required and the discharge must have been honorable.
If there is a question about the marriage relationship, a marriage
certificate or other proof may be necessary. Birth certificates of
dependent children are usually not required but may be necessary
under certain conditions. A dependent child is a minor, a
dependent student under age 23, or a totally dependent adult
child. There are certain documents that need to be submitted to
prove future recurring medical expenses and to prove need for aid
and attendance or housebound allowances. VA does not furnish these
documents nor provide any information that they are required.
Sample documents that could be used for these purposes are
included in our book.
Can someone charge to help fill out
VA application forms?
Federal code and VA regulations prohibit an
agent, advisor or attorney from charging a fee to fill out and
file a claim for pension. Most practitioners or providers help
their clients for free, sometimes in the context of solving other
retirement issues or providing long term care services. Some
practitioners offer application advice for a fee (which is legal)
but will send their clients to a veterans' service organization to
complete the application. Some assisted living facilities or home
care providers also offer free advice or help and this seems to be
an acceptable practice. An agent or attorney can also be paid by a
disinterested third party under certain conditions to complete an
application. However, a home care agency, assisted living facility
or nursing home that pays an agent or attorney to complete an
application on behalf of a resident or client does not meet the
definition of a disinterested third party is in violation of the
prohibition for charging a fee.
How are assets, income and unreimbursed medical
expenses determined?
The applicant must submit details on the
application of all income and all assets including retirement
savings accounts such as IRAs. Almost any type of money received
or anything received that can be converted into money is income.
The only exclusions for assets are a personal residence (occupied
by the veteran or spouse) and a reasonable amount of land it sits
on as well as vehicles and other personal possessions. Personal
possessions used as an investment such as a coin collection are
counted as assets. Unreimbursed medical expenses can be almost any
expense related to medical needs. |
