Financial assistance from Aid and Attendance Pension to pay for veteran assisted living or in home care.
Find how to apply for the Aid and Attendance Pension benefit program and learn on how this government financial assistance program can help veterans, their spouses or families, and/or caregivers as well. The program can help pay for assisted living or home care for disabled, elderly, and other veterans who need care.
Veterans and spouses requiring regular assistance from a caregiver may be eligible to receive a significant monthly government payment. The funds, which are in effect a free grant, will help pay the cost of care in an assisted living facility, a nursing home or even in their own home. The veterans spouse can also apply for this government financial aid program and benefit from it.
Financial aid from the Assisted Living or In-Home Care grant program
A qualified veteran and/or their spouse can receive anywhere from $20,000 to $30,000 per year, depending on their income and asset level. This non-taxable payment is made in addition to any other regular VA pension. An annual benefit of between $14,000 to $20,000 is also payable to a widowed spouse of a veteran if the spouse was married to the veteran at the time of the veteran's death.
There are of course several criteria that need to be met by the applicant. The grants and financial benefits from the Aid and Attendance Pension program are targeted. The criteria include, but are not limited too:
- The Aid and Attendance Pension is available for any veteran age 65 and older or who is totally disabled.
- The veteran must have served at least 90 days active duty with one day during a period of war as defined in law.
- Actual combat duty is not required.
- The veteran cannot not have been dishonorably discharged.
- The applicant, whether a spouse or the veteran themselves, must require assistance with some of the daily chores of living which may include dressing, eating, bathing or mobility.
- The need for grant based financial assistance does not have to be related to military service.
Countable Income
Eligibility for the pension is based, in part on countable income, which is close to/similar to total household income. It factors in employment, pensions, the spouses wages, dividends, and other annual or monthly income that the applicant(s) receive. The countable income of the veteran and spouse must be less than the pension amount they seek to obtain.
Countable income differs substantially from actual income. Countable, or “household income” includes wages from a job, Social Security, alimony, inheritance and some VA compensation. It does not include loans from reverse mortgages, welfare or SSI.
Un-reimbursed medical expenses that exceed 5% of the maximum annual pension rate are deducted from income. Expenses include cost of care either in the home or at an assisted living or nursing facility, Medicare supplemental insurance, doctor visits, health aids and prescriptions not covered by insurance.
Example of Aid and Attendance Pension program calculations
This real-life example demonstrates how a qualified couple requiring assistance may obtain the full VA benefit. Monthly income included $1600 from social security, $950 from a union pension and $1000 from a reverse mortgage. This totaled $3650, but since the reverse mortgage payment was not considered by the VA for income purposes, countable income before expenses was $2650.
Monthly expenses included $3,500 at an assisted living facility, $540 for a Medicare insurance supplement and $200 for unreimbursed prescriptions and miscellaneous health care costs. Expenses totaled $4240. Deducting 5% ($114.75) of the monthly maximum benefit resulted in qualified expenses of $4125.25
Deducting qualified expenses from income of $2650 resulted in negative countable income of -$1,475.25. For purposes of the application, this made countable income zero, and the couple qualified to receive the full monthly benefit. Given the rising cost of care it is easy to see how a couple with actual monthly income of $5000 to $6000 could still qualify to receive the full benefit.
Net Worth Limit of Aid and Attendance Pension
The VA also considers an applicant's net worth when determining eligibility. The calculation includes the entire household and all assets, including investments, the equity in a home, savings, the spouses assets, and more. The net worth limit is over $130,000, and this amount will generally be adjusted upward each year. A net worth above that amount will disqualify an applicant from receiving the pension.
The value of the applicant's home, vehicles, personal effects, furnishings and clothing are not counted toward that limit. Net worth includes the value of bank accounts, stocks, bonds and property other than the primary residence and vehicle. Annual income less un-reimbursed medical expenses to also included in net worth.
Look-Back Period
The VA has adopted a three year look-back rule similar to the five year rule used by Medicaid. The VA will review all property transferred in the three years prior to the date of application to the Aid and Attendance Pension to determine if the property was given away or transferred for less than fair market value. They can review asset transfers to spouses, children, and all relatives.
If transfers are discovered, the VA will assume transfer was made to reduce the applicant's net worth. However, if the applicant's net worth never exceeded the limit (around $130,000) in the first place, property transfers will not violate the rule.
The Application Process for Aid and Attendance Pension
To apply for the Aid and Attendance pension, a veteran or spouse must complete a detailed application. Forms are available online or from a VA office, including the pension management centers or a regional VA office. Learn more and apply here.
Information must be provided on military service and type of discharge, marital and employment history, income, assets, financial accounts and cost of care. Written documentation supplementing the application will be required. There is no charge to apply - spouses or the veteran can apply directly.
The application should include a detailed statement from a doctor verifying the need for regular assistance to attend to daily tasks. The statement should describe how any impairments affect the ability of the applicant to get around and to feed, clothe and bathe himself. Applicants should obtain medical records from their doctors to submit with the application. Alternatively, the applicant will be asked to authorize release of medical records from their personal physicians.
Once the application is received by the VA, applicants can expect a six to nine month wait for approval. The more thorough the application and supporting documents, the better the chance of a quicker review. The VA may request additional information during this period.
To make up for the lengthy time required for review of the Aid and Attendance Pension process, when the application is approved, benefits are payable back to the date the application was received. This will help give the veteran a larger cash infusion. The applicant can expect a lump sum, grant payment followed by regular monthly deposits to a bank account.
There are few restrictions on how the funds can be spent as long as they are used for the care of the veteran and spouse. The pension can be used to help cover the cost of care at an assisted living facility, adult group home, nursing home or in the applicant's own residence. Funds can even be spent to modify the applicant's home to accommodate a disability. Family members, other than a spouse, may be paid as caregivers. Detailed payment records should be kept.
The maximum monthly Aid and Attendance payment will rarely, if ever, cover the full cost of care at an assisted living or nursing facility. However, it allows the recipients to supplement their own income to cover the cost of care for a much longer period before having to resort to Medicaid.
Using the prior example, the couple continued to have income of $2650 a month once the reverse mortgage payment ended when they moved to an assisted living facility. Addition of the VA benefit increased monthly income to $4945 which was $705 more than health care expenses. This allowed the couple to minimize withdrawal of funds from their savings account while allowing them to cover other minimal expenses required to maintain a positive quality of life.
Receipt of an Aid and Attendance pension may disqualify the applicant from receiving Medicaid or a VA disability pension. Applicants should consider obtaining assistance from a verified veteran benefit planner prior to applying. The planner can provide help to calculate countable income and advice on how to structure assets, if needed, to qualify for the pension.
The spectrum of elder care alternatives continues to grow and now offers seniors a variety of options that can be tailored to meet daily needs as they increase. For veterans and their spouses, the Aid and Attendance pension is a valuable asset that can help them to remain productive, healthy and well cared for throughout their lifetime.
Phone number to apply for financial help from VA Aid and Attendance Pension benefit program
In addition to the information above, there is also a customer service line to apply at in order to get financial assistance from the Aid and Attendance Pension benefit program. Grants are available nationwide to help veterans pay for in-home care and/or assisted living. Dial 800-827-1000
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