Request for more info, since net worth

[Helen Lucas]

I have been trying to obtain this benefit for my mother. She is 93 yrs old with numerous medical problems. I had read that the net worth changes with age. Does anybody know how this change is calculated? Does it go up or down?
My mother lives on SS but, does have stocks worth 130,000. She does not want to use any of this since one hospitalization could wipe this out.
How can I help her?

[vetadmin]

Helen,

The VA makes no bones about not being in the business of protecting assets.  This pension is designed for those who truly "need" this money in order to afford proper care.

Below is a formula to help you determine what her "countable" income is.  In addition, you may want to contact Patty at ElderBenefitsConsulting.com to see if her services might be helpful.

The VA suggests that its adjudicators use a certain amount of personal judgment on this issue. But the bottom line is: does it realistically appear that the veteran or surviving spouse may outlive their assets? If so, they are likely eligible.

Do NOT count their residence or vehicle when estimating net worth.

Do NOT count a life insurance policy (because the policy holder must be
deceased in order to benefit from it).

DO count CDs, annuities, stocks, bonds, savings, checking, IRAs, Keogh,
etc.

DO count any assets owned by the spouse as well.

As a rule of thumb, assets should not exceed $80,000. That amount drops
depending on the age of claimant.

List below the estimated ANNUAL income of the veteran or surviving spouse:

 Estimate total income (If married include spousal income): ______

All income must be included. This includes social security, pension,
interest income, dividends, income from rental property, etc.

If the veteran is married, then any spousal income must also be included.

List all unreimbursed, recurring health care expenses:

 This includes:

 Assisted Living costs (per month): _________________

 Nursing Home costs (per month):________________

 Home Care service (per month):_______________

 Health Insurance premium (per month):_______________

 Medicare premium (per month):_________________

 Regular (unreimbursed) prescriptions
 (per month & verifiable through a pharmacy print-out): _____________

 TOTAL Expenses per month: __________
 (multiply x 12 to get total annual expenses)

Subtract your total annual health care expenses from your total annual
income and write the amount here: _____________. This is your "countable" income

[VSR]

The calculation essentially tries to look at whether or not the claimant's assets will last for the rest of his/her life.  In the case of your mom, since she is already 93, it would be safe to say that she will not need her assets for more than a few more years.  Unexpected medical costs are not used in calculating net worth. 

As I'm sure you can surmise, the net worth calculation looks roughly like this:

If (net worth / (gross monthly income - monthly expenses)) < life expectancy, then the award is granted

If (net worth / (gross monthly income - monthly expenses)) > life expectancy, then the award is denied

Obviously there is a little wiggle room on this.  If it is pretty close, nobody is going to split hairs.  However if a claimant's net worth is going to last him/her 25 years and they are 85 years old, it will be denied.

[AngelaManz]

She must disclose the stocks to the VA if she owns them.  However, if she does not want to use the stocks and does not want them to count against her for VA purposes, I suggest contacting an elder law attorney to discuss transferring those stocks in a manner that will allow her to retain VA eligibility.  It can be done with careful planning.  Try www.naela.org to find an elder law attorney in your area.

[jpez]

Helen,
How could one hospitalization wipe uot 130k?
she should have Medicare and a Medicare sup.

If not, then check into it.

Also, she is more than likely inelegible to recieve PENSION. And will probably be asked to pay back.
I would check and see if the 130k was reported on the origional application......