Immediate Annuity: Asset or Income Stream?

My father is a Korean War Veteran. He has over $100K in an IRA. My wife and I are helping him organize his estate so he can qualify for A&A. On thought was to convert his IRA to an Immediate Annuity so that the asset is now an income stream over 5 or 10 years. The income stream from these types of annuities can also be delayed for 1 year from the time the annuity is purchased. We expect my father's expenses to go up significantly in the next 12 months as he has been diagnosed with a mild form of dementia. Delaying the income stream will help match expenses to income and keep him qualified. Can anyone confirm how the VA treats an income stream from an annuity? Do they consider this purely income or is it an asset?