family support

[Agnes]

My mother has been living in an Assisted Living Facility since 2007. She applied for Aid & Attendance when she was first admitted, but was  denied. Since that time she have given up driving and requires much more assistance with her daily living expenses, so we are applying again. I sent the application material in and indicated that my sister and I contribute to our mother's support. The VA has requested statements from each of us stating how much we are contributing and what the money is used for. We contribute about 2500 per month, but are not able to do this indefinitely. (My husband has recently passed away and my sister's husband suffered a recent heart attack.) Does anyone have a suggestion as to how to word our letters so that the VA will not count our contributions as part of our mother's income?
Thank you.

[vetadmin]

First thing is, you should not have submitted a new application.  You could of have just submitted a 21-4138 Statement in Support of Claim in which you could have updated her situation.  The VA should not be looking at what you and your sister are paying each month.  Just showing her financial situation and the shortage each month should have been enough, but since they have requested it, you need to respond. 

What I suggest is that you get a letter from the administrator of the facility stating her monthly rate and the amount of payments you and your sister are making.  Also get her to list the services being provided and the necessity of it.

Word your letter pretty much the way you have it here.  Her circumstances have changed, she is short each month and that you and your sister cannot continue to coverage her shortages for an extended period of time.

Please keep us posted as to how you make out.

[Agnes]

I thought that after so much time I would need to file a new application.

I probably have not been doing this properly, but I was transferring my sister and my contribution into the joint checking account that I have with my mother and paying her bills with that. I wanted the payment to the ALF to be paid by her so that she could deduct the payments from her taxes.
Any additional comment would be appreciated.

[vetadmin]

Since you are this far into the new application, it would more than likely be in your best interest to see this through.  You can use your statements to show your deposits.  It may be a sticky point, but going forward you need to have a better accounting of where and what monies belong to who.

This pension is not taxable, so you need to keep that in mind should she be approved.

[jpez]

You never want to deposit money into a seniors account. that's basicly income.  As admin says VA is nontaxable. 100% of Asf is deductable as medical expense. VA will assume that the money was hers and you've opened a can of worms. stop immediately.

Why worry about how to word a letter tomorrow when you can stop now.  I really can't imagine a tax situation that would require her to need the entire deduction AND there be such a large short fall.   1997 tax law clearly states that LTC (which is what ALF is) is based on the condition (needing continual care) not the location. So if she needs regular care it is 100% deductable after the first 7.5% on medical. Mom needs to pay 100% of her income for care. that gets the max award. you and your sister pay the difference directly. And pay any other non-medical.

[Agnes]

Are you suggesting that we pay her ALF monthly fee with 2 checks, one from her account and one from ours?

[vetadmin]

Yes.  You need to demonstrate a clear division of her finances to stand on their own, and that she does not have enough income monthly to pay for her care.