Over three and a half years ago on January 23, 2015, the Veterans Administration (VA) proposed significant rule changes regarding eligibility requirements for the Aid and Attendance pension. Since that time, we have been waiting (and waiting) for the VA to release its final rules. Well, the wait is finally over. The new VA rules have been released with an effective date of October 18, 2018. Not surprisingly, the new rules will make it more difficult for many veterans and their spouses to qualify for the Aid and Attendance pension. Here are the most notable changes:
- Three Year Look Back Period for Divestments. Previously a veteran or veteran’s spouse could give away resources without penalty in order to qualify for the VA pension. Now there will be a three year look back period for any transfer for less than fair market value after October 18 of assets that exceed the new net worth limit.
- Penalty for Divestments. Any transfer for less than fair market value within the three year look back period will be subject to a penalty period that can last up to five years. The penalty will be determined by dividing the total amount of excess assets divested by the maximum annual pension rate (MAPR) which is currently $2169.00 for a married veteran with one dependent.