VA SAYS - in assisted living, EMPTY house COUNTS toward $80,000 cut off

[leeisdell]

HELP.  I've been digging thru numerous A&A help sites for months.  This one is the best and I've been following the posted guidance...but VA CONTRADICTS posted info...specifically...
Dad is 90, WWII vet, w/Alzheimers.  Spouse/Mom died 11/2011 and I had to place him in the "memory unit" of a close by assisted living complex, (got all the medical paperwork done).  He has few $$ assets, mostly Soc Sec.  I called local VA "expert" based on recommendation from our local Alzheimers support group and was told...

VA Expert said in essence - "As Dad is now in "assisted living" in your area, then his EMPTY residence in former location is NOW an ASSET..and COUNTS towards the $80,000 cap for assets".  I was told to "...transfer it to my name, sell it cheap & immediately or otherwise get it out of his name BEFORE you apply and spend down the sale proceeds..." (which of course violates the principles of the 5-year "look back" of Medicaid).

EVERYTHING I see (posted, FAQ's, etc) says do NOT count the "residence".  VA is telling me his "residence" is now the Assisted Living location, NOT his former home, so its NOW an asset.

Guidance??? Input?? HELP!!??  (I'd trying to do the best I can for him and have no intention/desire to "save" any of his assets...any $$$ he has is FOR his care)

Thank you.

Lee

[vetadmin]

Lee,

Welcome to the forums, and glad you found us!

The house does not count as an asset.  If you sell it, or rent it out, you would have to report the money as income.

Since the house does not count as an asset you do not have to report it from a technical standpoint "if" the applicant has any intention or desire to return home for their final days, or has any hope of returning home and having services come in.

This is a big "if", but the VA does allow for the possibility of returning home.

The 80K is not the cap.  Some folks have more than 80K and still qualify as it all comes down to what their "countable" income is for VA purposes.

For Medicaid purposes you have a look-back period, which the VA does not have, so if you are looking at Medicaid down the road, the houe is going to be an issue.  As wll if you apply for A&A and then go on Medicaid, he will only be allowed to keep $90, which cannot be spent on medical expenses, but rather on personal items.

For VA purposes, if the home is owned by more than one person, then your Dad would only have to claim his % if you sell the house.