Do living expenses paid by children count as income

[dooley]

We're applying for A&A for my mother-in-law.  Did a search before posting and couldn't find anything that answered my questions.  Started reading every post and found this which seems to answer the question of whether living expenses paid by the children count as income (I assume they do not),  but I'm wondering 1. Where on the forms do we show that we are paying these expenses?  Also, her paid caregiver will be one of her daughters who has quit her job in order to be able to take care of her mom.  2. Should we allow this daughter to chip in toward her mom's expenses or will this muddy the waters?  We had planned to open a separate account to use to pay household expenses, 3.  Is it all right if we just pay these living expenses without putting my mother-in-laws name on the account?  Since she won't actually be putting any money in this account it would be easier if we paid all these bills without involving her.

38 CFR  3.272 Exclusions from income.

(b) Maintenance. The value of maintenance furnished by a relative, friend, or a charitable organization (civic or governmental) will not be considered income. Where the individual is maintained in a rest home or other community institution or facility, public or private, because of impaired health or advanced age, money paid to the home or the individual to cover the cost of maintenance will not be considered income, regardless of whether it is furnished by a relative, friend, or charitable organization. The expense of maintenance is not deductible if it is paid from the individual's income.  Where on the forms do we show that we are paying these expenses?  Also, her paid caregiver will be one of her daughters who has quit her job in order to be able to take care of her mom.  3. Should we allow this daughter to chip in toward her mom's expenses or will this muddy the waters?

[KarenO]

I don't believe there is anywhere on the form where you indicate you are paying her living expenses.  You will put her income, assets and medical/alf (if applicable) expenses.  They just need to see the figures and calculate if she needs the assistance.  My mother's application showed she was in the hole big time but we didn't have to indicate anywhere that we were currently covering the shortage.   

[dooley]

Thanks for the reply.  I was afraid they'd look at the figures and wonder how she could be living since almost all her income is going for medical expenses. 

[jpez]

No, they don't really care about anything but the gross income and the cost of medical/CARE.
anything else will muddy the process and cause them to question why you are telling them something they didnot ask for.

[pattyclarke]

I'm new to this and in the process of researching information prior to filing for A&A in the next few months for my mother-in-law. In the beginning I felt like being very thorough with the application process and including bank statements, medical records and a well organized notebook approach would be best. (Give them a huge stack of paperwork to cover all the bases etc. was the best way to go.) Now with what I've read during my research, I'm leaning more towards the minimal approach and not provide excessive documentation, just wait and let the VA ask for stuff they want. Any thoughts about this?

TIA,
Patty

[jpez]

YOu are not required to send any documentation except the dd214 and marriage lic and death cert.
When you send more than they are expecting, they tend toask "why".
I would send a cover letter explaining what yis happening and being organized is good.

Unlike medicaid, where more is better and you have to prove everything!

[VSR]

Thanks for the reply.  I was afraid they'd look at the figures and wonder how she could be living since almost all her income is going for medical expenses. 

If you are paying for her expenses, they do not count as expenses.  VA will randomly audit pensioners for proof of payment.  If they do this and there is evidence that the claimant did not actually pay for the expenses, they WILL get a VERY large overpayment.  The best thing to do is to use all of the claimant's income for medical expenses first.  Then it will max out their pension and from there on out, they will be in better shape.  This is a VERY touchy situation and it is best to be honest from the get-go.  Overpayments are never pretty as they can lead to treasury garnishing SSA benefits.  Nobody wants that.