On January 23, 2015, The Department of Veteran Affairs proposed a rule that “would establish new requirements pertaining to the evaluation of net worth and asset transfers for pension purposes and would identify those medical expenses that may be deducted from countable income for VA’s needs-based benefit programs.” The proposed rule includes a three-year look-back on asset transfers, the establishment of a ten-year maximum penalty period, and a clear net worth limit tied to the maximum community spouse resource allowance established for Medicaid purposes (presently $119,220). The VA is now accepting comments to this proposed rule.

Why could this be significant? If implemented, this would bring more certainty to what has been a seemingly  subjective process in applying for VA Aid & Attendance Pension benefits, and would also prevent persons from gifting/transferring assets and then immediately qualifying for VA Aid & Attendance Pension benefits. Stay tuned for more information…