Staying in your home in your Golden Years - Help from the VA Pamela Burdick
10/14/05
Staying in your home in your Golden Years - Help from the VA
A vital component of owning a home is the ability to remain in that home as we become older and perhaps less robust or actually disabled, what has been called “aging in place”. Numerous people are unaware of many benefits available to help us remain in our homes as we age or become disabled or less-abled.
One of the biggest surprises for many clients is learning they are entitled to “VA” benefits from the Department of Veterans Affairs (formerly the Veterans Administration) called Non service connected pension, hereafter referred to as ”Pension”. (This benefit is to be distinguished from “disability compensation” earned due to service-connected injuries, or conditions, which are not addressed in this article.)
“Pension” is a non-service-connected benefit based on financial need and is available to any veteran (and some dependents) who meets certain criteria. In general, the veteran must be
permanently and totally disabled (determined by your doctor) or age 65 and older regardless of current physical condition;
receive low income (after reduction for unreimbursed medical expenses);
have served 90 days or more of active military service, at least one day of which was during a period of war (other rules may apply for Vets who began active duty after September 7 1980);
have been discharged from active duty under conditions other than dishonorable; and,
the disability must be for reasons other than the veteran’s own willful misconduct.
Even greater benefit amounts are available to those who are in need of regular assistance of another person (Aid and Attendance benefit), and to those who are housebound (homebound benefit).
Furthermore, a disabled or aged surviving spouse of the veteran will qualify for benefits if the surviving spouse:
was validly married to the qualifying veteran at the time of his or her death, and for at least one year before death; or,
was married for any period of time if a child was born of the marriage, or was born to them before the marriage; and,
did not remarry
Dependent children or parents of a qualifying Vet may also be eligible for valuable benefits.
The disabled Vet must also meet financial tests including net worth and income limits.
Net worth limit: examines assets and income to determine reasonable need (and is usually LESS THAN $80,000.00 in assets for a couple - not counting their home, car and other personal goods).
Income limit: the total annual income of the Vet (and spouse combined, if any) must be less than the Maximum Annual Pension Rate (MAPR). The current MAPR by category is:
Veteran without dependent $10,162
Veteran with one dependent $13,309
Veteran permanently housebound, no dependents $12,419
Veteran permanently housebound, one dependent $15,566
Veteran needing regular aid and attendance,
no dependents $16,955
Veteran needing regular aid and attendance,
one dependent $20,099
At first glance you may think your income is too high and not investigate further. However, your income will be reduced by your unreimbursed medical expenses (UMEs). Many people do not realize how much they actually spend on UMEs. To be deducted, UMEs must actually be paid, may not be reimbursable by anyone else (for example insurance), and must exceed 5% of the MAPR. However, a wide variety of expenses are included in UMEs. On the initial application these include recurring expenses such as Medicare part B premiums; health insurance premiums (Medigap); cost of a home health care aide; long term care insurance premiums; and, the cost of an Assisted Living Facility or Nursing home. Nonrecurring expenses are included in the annual review and include in addition to the above: medical co-payments; prescriptions; over counter medications; any doctor or dentist fees; eyeglasses; hearing aids; transportation to health services; therapy; and, pre-need funeral arrangements.
For many people, once all UMEs are subtracted they will qualify for this valuable benefit. The following example shows how someone who seems to have too much income qualifies after deducting UMEs:
Joe Jones is a married permanently and totally disabled Vet who meets all technical requirements for serving in time of war and is in need of Aid and Attendance.
Joe has one dependent; a combined annual income with his spouse Shirley from Social Security and other pensions totalling $36,000 ($3,000 monthly). The MAPR benefit Joe would qualify for is $20,099 if his and Shirley’s combined income after UMEs was less than $20,099.
Joe and Shirley have been paying $500 per month for medications, $300 per month for Medigap insurance, plus $1,000 per month for a part time aide, all unreimbursed = $1,800 monthly UMEs.
Joe’s UMEs of $1,800 per month x 12 months = $21,600 annually and easily exceed 5% of $20,099. So we subtract the $1,800 UMEs from Joe’s monthly income of $3,000 leaving Joe with $1,200 per month x 12 months = $14,400 countable annual income. So Joe qualifies for the pension with Aid and Attendance in the sum of $5,699 annually ($20,099 MAPR minus countable annual income of $14,400 = $5,699). $5,699 is a significant benefit to add to their annual income to help them stay in their home.
If you or your spouse (or a relative or friend) is a veteran and struggling on a fixed income, you may wish to contact an elder law attorney to assist you or them in determining qualification for this benefit. It may mean the difference in being able to afford to remain in the home or having to seek an alternative. In addition, you can get a great deal of assistance from the truly terrific people at your local Office of Veteran and Elder Affairs.
Current MAPR rates along with a wealth of information for veterans and their families may be found at the VA website which is www.va.gov or in the informative VA pamphlet at http://www1.va.gov/opa/vadocs/Fedben.pdf
Your local offices of VA Services are listed on pages 86-88 of the online VA pamphlet listed above. In addition, you may call 1-800-827-1000
If you believe your otherwise qualifying Vet or survivor cannot obtain these benefits due to excess assets (or income), I urge you to consult an Elder law attorney to assist you with planning strategies that may achieve qualification. |
