Articles Posted in Aid & Attendance

Often times when I work with clients in Metro-Detroit interested in long term care planning clients are often interested in engaging in planning for VA benefits, but are unaware of the consequences involved with regard to Medicaid benefits should their health decline necessitating a move to a nursing home.

In order to qualify for VA benefits, some clients often transfer their assets to their children or into a special type of trust, at the direction of a financial planner or other “adviser,” to preserve their assets; and, yet qualify for benefits. Frequently, such “advisers” are so focused on qualifying for VA benefits that they often ignore the legal, tax or Medicaid consequences of performing such planning. This often results in added legal expenses to effectively “undo” the planning that was done to qualify for VA benefits and to qualify for Medicaid benefits for the nursing home care that the person now requires.

The solution is to engage in a plan that contemplates additional benefit planning in the future. This can be accomplished by working with an elder law attorney that has knowledge in both areas-VA planning and Medicaid planning. Often times documents and planning can be performed to quickly change gears from VA planning to Medicaid planning without missing a beat or incurring additional costs.

The holidays are often a good time to evaluate long term care options. Often, I receive phone calls from children who after visiting with their parents over the holidays realize that that they need more assistance at home or that mom and dad are not doing as well as they thought. Or after self evaluation and goal setting for the new year, some seniors want to move to senior residences to have more social activities and less responsibility with their homes. If you have a loved one or are someone facing these situations, VA benefits can offer a great planning opportunity.

In the metro-Detroit area, there are several assisted living and senior independent living facilities that are familiar with the VA aid and attendance program. In fact, many facilities will provide prospective residents with materials regarding VA benefits in order to help offset the monthly living expenses at their facilities or to prolong a resident’s stay at the facility after his or her funds are exhausted.

The aid and attendance benefit will provide additional monthly income to supplement seniors that need assistance and live in such facilities. This benefit can be the bridge between a qualified veteran’s regular monthly income and his or her monthly rent and medical expenses.

Each year, the VA increases the pension benefit amounts consistent with the cost of living adjustment recognized by the social security administration. For your convenience I have included the projected 2009 pension amounts. The amounts depicted include all benefits provided through the VA improved pension program which includes Aid and Attendance; Improved Pension; Low Income Pension and Accrued Benefits. If you have specific questions about these benefits, feel free to contact our office, especially if you or your loved one resides in Michigan.

2009 Pension Rates
Improved Pension (Effective 12-1-08)

COLA Adjustment 5.8%

In Michigan, most veteran’s that I meet with are interested in learning more about a little known VA benefit called Attendance Aid and Care. Frequently, attorneys practicing elder law will refer to this benefit as A&A. This benefit is designed to assist veterans that are suffering from illnesses or disabilities with the cost of their medical care. A& A can become a great benefit for those that are interested in assisted living and home care.

Most veterans are prompted in receiving more information about this benefit while they are considering moving from their homes to a senior residence or after their families decide that they need more help at home. The benefit can provide a significant source of income to assist qualified veterans with their care. For some veterans, this benefit can even “open the doors” to facilities that they previously could not afford based on their regular monthly income.

The benefit is best viewed as a dollar for dollar match for medical expenses incurred by a veteran. It is not a benefit designed to assist a veteran that is otherwise healthy. For more information regarding this benefit, please contact an accredited individual, a military service organization or a well qualified Michigan elder law attorney that is accredited with the VA. If you are in Michigan or have a loved one in Michigan that may qualify for this benefit, please contact our office either by phone or through our website: www.smdalaw.com.