I meet with someone just about every week who needs assisted living or in-home care, but does not have the money to pay for it. Unfortunately, most of the time, they also make too much money to qualify for help through the state. If the person needing care is a veteran who served during a period of war or the surviving spouse of a veteran who served during a period of war, VA Aid & Attendance can be the perfect solution. The income and asset limitations are more lenient than either Medicaid or Special Assistance. There is no estate recovery. And at the present time, there are no gift penalties and no look-back period. There are many planning opportunities for qualified veterans.
More than two years ago, the VA published a proposed rule that would significantly change VA planning. It would amend the portion of the code of federal regulations that would create a 3-year look-back period and a transfer penalty. The VA did not initially give any guidance on when the proposed rules would come into effect. However, in October 2016, a VA staff member stated that because of the complexity of the rule and the large number of comments received, the VA did not anticipate publishing the final rule before April 2017. It is now the end of April and the rule is not in effect. The newest unofficial estimate is that it may come into effect later this year.
I was more cautious about VA planning last fall. At this point, it does not seem likely that the new rules will be implemented anytime soon. While every case is different, in most cases, I am suggesting that clients move forward with VA planning. If you or a loved one are a veteran who served during a period of war and needs assisted living or in-home assistance, please call us at 252-289-9800 to set up a time to discuss this opportunity.
UPDATE: The VA published its final rules on September 18, 2018. The scope of the new rules is beyond what can be posted here. Please seek updated information.