Asset Requirement for Eligibility - $80K for couple or individual?

[SuzyB]

My mother, who just turned 80, suffered a stroke last month and we have been looking at Assisted Living Facilities to care for her.  One of the facility owners asked if our father was a veteran and told us about the Veterans Aid and Attendance Pension Benefit.  They also referred us to a Financial Advisor.  We were told that the Advisor would help us complete the necessary paperwork.  Well, we met with the FA to discuss our mother's finances.  Her assets are close to $100,000.  He told us that her assets needed to be under $40,000 and recommended setting up 2 annuities for $35,000 each - one in my name and one in my brothers.  He said that there was no way that this money could be traced back to my mother and it would allow her to qualify for the VA benefit. 

After doing some research of my own on the Internet, I see that the recommended assets amount is below $80,000.  I am wondering why he told us $40K.  Is this per couple perhaps?  Or did he give us a smaller amount so we would move more money to the annuities with his company (which pays him a commission).  I realize that this site doesn't offer financial advice, but I'm just trying to determine if the FA is giving us correct information. 

[vetadmin]

Suzy,

Your assessment of the situation is most accurate.  The only person they are looking to help is themselves and you would be wise to NOTaccept the offer.  Shame on the ALF for refering you.  Contact Patty at www.elderbenefitsconsulting.com to determine if she would qualify.  The general rule of thumb is $80K, but there are factors that affect that amount.  $40K just means a nice commision to the salesman.  Not in your or your mother's best interest.

[SuzyB]

Thank you so much for your advice!  I will contact Patty as you suggested. 

Regarding the ALF, they also told us that they will accept our Mother at a rate of $1800 per month. 
However, once she is approved for VA benefits, the rate would go up to $2400 (retroactive to her
move-in date.)  This just doesn't seem ethical to me either, but other ALFs have told us they would
charge a higher rate once she received VA benefits as well.  Is this legal? 

[vetadmin]

It is not uncommom for an ALF to work with a family while they are in the process of application for this pension with the understanding that the rate will go up once an award is made.  Is it legal, yes.  They can charge whatever they want and don't have to discount the rate while you wait on funds to pay for the care.  Is it necessarily the nicest thing to do, no.  They are a business and for them it comes down to the bottom line and profits.  What you have to determine is if this is the best situation for your mom and look past what seems like being taken advantage of .