VA Aid and Attendance Pension Changes October 18 2018
The VA announced new rules going into effect on October 18, 2018, which changes qualification for the VA Aid and Attendance benefit.
Wartime veterans or their surviving spouse with limited income may be eligible to receive the VA Aid and Attendance benefit to help pay for the assistance they may need in everyday activities or with long-term elder care, home care aides, skilled nursing, or adult daycare. The most notable changes to this benefit that took effect on October 18, 2018, were the introduction of a three-year look-back period and a revised method for determining net worth. Later, on December 1, 2024, both the benefit amounts and net worth limits were increased by 2.5% to match the Social Security cost-of-living adjustment, resulting in a higher maximum monthly Aid and Attendance pension.
The addition of a three-year look-back period for gifting had the most negative impact on applicants. The VA now looks at asset transfers that the applicant made in the past 3 years. If a transfer was made for less than fair market value, the VA will consider it a gift and will impose a penalty.
Previously, the VA determined eligibility through a subjective approach. It would look at the applicant’s total countable assets, which could be no more than $30,000.00-$80,000.00, in conjunction with several other factors such as income and expected lifespan. The new rules take a more objective approach and look at an applicant’s net worth.
For VA purposes, net worth is determined by the combination of assets and income. As of October 18, 2018, to be eligible for the program, the applicant’s net worth could not exceed $123,600.00. This net worth cap has been raised up to $159,240 as of December 1, 2024.
The VA now explicitly excludes the primary residence and one vehicle from net worth calculations, aligning Aid and Attendance rules more closely with Medicaid’s structure.
This is a positive change because it takes away the guesswork when determining eligibility. Acceptable ways in which net worth can decrease is through asset decrease, income decrease, or both.
Asset decrease can be done by spending money on things that are purchased for fair market value. Some examples include household goods, appliances, electronics, or other consumer goods and services. It would even be acceptable to spend money on traveling to see your grandchildren!
The VA announced new rules going into effect on October 18, 2018, which changes qualification for the VA Aid and Attendance benefit.
