November 11, 2022
What are the 5 Requirements of VA Benefit | VA Benefit Explained
In this episode of Berry’s Bites, Chris Berry discusses What are the 5 requirements for VA benefits? If you are charitably inclined, if you are donating to churches or charities, and still haven’t heard about Donor Advised Fund and Qualified Charitable Deductions, then this episode is for you.
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Mom served in the Navy during Korea and is now going into assisted living we’re working on getting the VA benefit and they’re thinking about selling the house.
So we have this VA benefit which is one of the ways to pay for long-term care and if we have a veteran or a surviving spousal veteran we can bring in additional funds to help pay for that benefit there are five requirements for the VA benefit and more specifically we’re talking about aid in attendance or sometimes called the non-service-connected pension but there are five requirements for this so first 90 days active duty second cannot be dishonorably discharged third one day during a period of conflict so this has to be like world war II Korea, Vietnam fourth and this is where it gets a little more complicated.
Long-term care costs are greater than income so we need to be paying out three thousand four thousand dollars a month for long-term care and having two thousand or three thousand dollars a month of social security pension coming in and then fifth now there’s an asset test where I think this year the number is if we have more than 138 of assets then we’re not going to qualify plus since 2008 there’s a three-year look back we meet all those requirements then we can bring in extra thousand to two thousand dollars a month to help pay for home care assisted living or nursing home care so it’s a cool benefit.
Now in this situation say we have mom here and I didn’t include this right in the question they submitted but mom had about 88 000 right now in cash and then had a home the family already submitted a VA application working with their veteran service organization but they knew that they’re going to have to sell the home and let’s say this homes voted 150 000 sell the home to help pay for the assisted living because otherwise, mom’s money is just going to dwindle until she runs out of money for assisted living.
So they knew they were going to have to sell the house now if they were to sell the house all of a sudden that’s going to put them over the asset limit right 150 plus the 88 but what we can do is we can set up a veterans asset protection trust which is a form of asset protection trust move the house into the trust even within the three-year look-back period now the house is in the trust and the VA doesn’t care if you transfer the exempt asset into a trust and then we can sell it and now the money is 100 protected.
And now this 150 000 or whatever they sell the house for that’s protected mom still gets her VA benefit and then the family can open up the trust and use the money to help pay for mom’s care moving forward and then if mom passes away the money can go to the kids so rather than spending this money down and losing that VA benefit we were able to protect the proceeds of the home have her maintain that VA benefit and then also build in Medicaid protection if mom were to need nursing home care in the future so if we do have veterans who served 90 days active duty one day during a period of war we’re not just honorably discharged there are certain ways that we can bring in additional benefits to help pay for that care.