Advice Needed - We've made a mess of things

[Debra56]

Hello,
I'm a newbie, but I've been researching here for a while, trying to understand my mother's A&A pension.

A little background first........mother is elderly and has done a great job living alone in her home, but last year her health declined to the point where she became homebound and in need of in-home care. My sister did a good job of securing the documents and getting mother approved for the A&A pension, with the full benefit of $1,056 per mo. Mother's SS income of about $12,000 was lowered by deducting her med insurance expense, and with a statement from a home-care service that she had only used a few times in the past. The company estimated the cost for mom's care would be about $1,000 per month and my sister used this on the 21-8416 to reduce mom's income to below zero. Mother was approved within a few months and began receiving a monthly pension check, along with some retroactive pay.

Unfortunately, mother had a very bad experience with the in-home care giver that frightened her so badly that we had to stop using them. Mother also demanded that we not report this person to their employer because of the threatening tone of the care giver, with mom living alone and all. My sister stepped forward and has been taking care of mom since this incident. I'm unable to help out since I live out of state.

Mom recieved the first EVR recently and after much research, I now realize that we have unwittingly gotten into a big mess. My sister hasn't been receiving pay for her services and she says she won't consider it because she is also disabled and is afraid that if she reports the income on her tax form, it could jeapordize her situation, both monetarily and with her own health care. I cannot disagree with her and she has been a hero for doing such a good job with mom, given her own medical condition.

Finally, here's the problem. My sister has completed and returned the one page EVR and she wrote in the same medical expenses for 2010 that were preprinted on the form, even though we didn't use the in-home care company which she used to help qualify. She also entered a similar amount for 2011, so that she wouldn't have to complete the 21-8416 form.

My sister doesn't fully understand the ramifications of what she's done and the only way I understand, is by spending a lot of time on this forum and picking up bits and pieces elsewhere on the internet.

How on earth can I start to repair the damage? I've just returned from a holiday visit at home and we didn't know that mom would receive an EVR this soon, so I will have to work on this from afar. If the advice is to hire a lawyer, that's going to be hard to do since mom's assets are very low and if my sister and I have to pay back all the money mom has received and spent, there won't be anything left for a lawyer.

I also fear that my sister will fall apart when I explain things to her and that she might insist on allowing the pension to continue, as opposed to calling this to the VAs attention. I shutter to think what would happen if the pension continued for years and then the system caught up with it. I am the youngest of our aging family and I feel a responsibility, but honestly part of me wants to bury my head in the sand.........and now I feel guilty for saying that.

Sorry for the long post and thank you in advance for any advice,  Deb

[KarenO]

Yes, what a mess!  I think it's pretty clear you need to let the VA know the change in her circumstances and the sooner the better.  I'm sure someone else with more knowledge will advise you exactly how to do this.  Hopefully the A&A money hasn't been spent because I'm sure you will need to reimburse the VA at some point.  I wouldn't let this go on much longer.

[vetadmin]

This is not something to ignore, and needs to be handled ASAP!  Bottom line is this:
It’s called fraud.  If the VA finds out they will ask for all the money back from the month the homecare company was fired.  Your sister should find out how much she can be paid for caring for a family member without losing disability and accept the lower A&A if that is what the end result it.

[Debra56]

Understood, and I will do my best to convince my sister and mother to do what's right here. This is NOT a defense for my sister, but I believe she thinks that the VA is getting the in-home care that it's paying for since she's doing it for free, and there's quid pro quo here.

Your sister should find out how much she can be paid for caring for a family member without losing disability and accept the lower A&A if that is what the end result it.

Good idea, and I'm wondering if there's any way for my sister to get credit for the in-home care she provided for mother, the last few months of 2010. Or, should that even be mentioned when we notify the VA of the change in circumstances?

Thanks,  Deb

[vetadmin]

She can claim it and can be paid as a caregiver, but there has to be a paper trial showing that your mom did pay her via check, and your sister would need to claim that as income for 2010.  The VA works very closely with the IRS for verifications.

She really does not want to know how ugly things can get if the VA finds out money is owed back.  At that point she may have no choice on retaining legal counsel.   I hope you are able to convey to her how serious this is.

[Debra56]

She can claim it and can be paid as a caregiver, but there has to be a paper trial showing that your mom did pay her via check, and your sister would need to claim that as income for 2010.

From what I've read, the VA would need a contract between mother and my sister, plus copies of cancelled checks or a bank statement showing the payments......right?  So, would the VA accept a check(s) written in Jan. for in-home care that was provided in 2010?  Deb

[vetadmin]

It is advisable to have a written contact, but is not "necessary", but again suggested.

Can't really answer the question on the back payment, as she would need to determine how best to address that.  This goes to more of a legal question, and can't comment.  Sorry.