Issue 2, March/April, 2008
FEATURE ARTICLE - "SECRET DOLLARS": VETERANS BENEFITS FOR LONG-TERM CARE REVEALED
LEGALLINE PART 1 - ECONOMIC STIMULUS ACT OF 2008 BY CONGRESSMAN JOE SESTAK
LEGALLINE PART 2 - IRS WARNS OF E-MAIL AND TELEPHONE TAX REBATE SCAMS
CAREGIVER HELPLINE - MANAGING THE STRESS OF CAREGIVER RESPONSIBILITIES

"SECRET DOLLARS": VETERANS BENEFITS FOR LONG-TERM CARE REVEALED

One of the Veteran Administration's best kept secrets, which is an excellent potential source of funds for long-term care (either at home or in an assisted living facility) are veteran's benefits for a non-service connected disability. Most VA benefits are based on a disability which was incurred during a veteran's war time service. There is another benefit, however - a pension program - available for individuals who are disabled due to the complexities of old age, such as Alzheimer's, Parkinson's, multiple sclerosis, and other typical disabilities. For those veterans and widows or widowers who are eligible, these benefits can be a blessing for the disabled individual who is in need of long-term care.

There is a specific portion of the pension program which is of particular importance. This program is called "Aid and Attendance" (A&A) and is available to a veteran or a widow or widower of a veteran who is not only disabled, but has the additional requirement of needing the aid and assistance of another person in order to avoid the hazards of his or her daily environment. In other words, someone who needs help to prepare meals, to bathe, to dress and otherwise take care of themselves.

Under this program, a veteran can receive a maximum of $1,842 per month in benefits and a widow or widower can receive up to $998 as a maximum benefit for A&A for the year 2008. The applicant must be determined to be "permanently and totally disabled" (According to VA rules, anyone over the age of 65 is presumed to be "totally and permanently disabled". The applicant does not need to be helpless - he or she need only show that he or she is in need of aid and assistance on a regular basis. Someone who is housebound, or in an assisted living facility and over the age of 65 is presumed by the VA to be eligible for A&A.

This particular program has limitations related to the income and assets of the applicant. However, in computing the income of an applicant, certain items can be deducted. Specifically, unreimbursed medical expenses paid by an individual may be used to reduce the applicant's income. Home aids are an allowable medical expense deduction, as long as that attendant is providing some medical or nursing services for the disabled person. The cost of an assisted living facility, and even part or all of the costs of an independent living facility, can also be an allowable medical deduction to reduce income to a much lower net countable income that may qualify an applicant for A&A.

Here is a simplified example: Bill Roberts is a 66 year old veteran and, due to his health needs, has caregivers coming to his home for several hours each day. His income is $1,800 per month and he is paying caregivers $3,300 per month. Rather than deplete his savings of $45,000, he applies for A&A. The VA considers the $3,300 per month he is paying to his caregivers as unreimbursed medical expenses and subtracts that amount from his income. In other words, when calculating his eligibility for A&A, the VA considers his income to be negative $1,500. His application is approved and he is eligible for $1,500 per month to help him pay his bills.

Before filing a claim for A&A, it is wise to seek the advice of an experienced elder law attorney who is familiar with the interplay among estate planning, disability planning, Medicaid, and veteran's benefits. An attorney skilled in elder law can provide a veteran and a veteran's family with appropriate pre-filing planning to take the appropriate steps to make sure the veteran or his or her widow or widower can take full advantage of this valuable benefit.

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