A&A rules after approval

Discussion in 'Selling of Home' started by dcefalu@bellsouth.net, Oct 12, 2015.

  1. My dad was approved for the A&A and is already receiving it. It has been a blessing and I do not want to do anything to interfere with it in any way. My situation is this, my parents donated their home and the vacant lot attached next to it, to me and my two siblings twelve years ago, with my parents having usufruct of the property. All this was recorded int the courts when the donation was made and there is no mortgage on the house or property. Now that my parents are unable to care for themselves, they have moved into an assisted living home, but the house is vacant and getting run down now and in need of repairs.They had already moved in the assisted living when we applied for A&A.We would like to know if we can either rent or sell the house now. I was told I could have a letter drawn up and signed by my parents saying they give us permission to rent the house and agree that all rental income is to be used strictly on the house expense such as property tax, insurance, maintenance and repairs and that the rental income would not be taken by them nor used for them. Would this letter legally stop the rental income from being counted against him or would it cause hem to loose his A&A income or lesson the amount he is receiving? Would it be better to rent, sell , or leave the property vacant at this time, or would either way selling or renting with this letter interfere with his A& A , since technically we already own the property through donation? This usufruct is really causing a lot of confusion. Would the VA allow him to terminate his usufruct now or would this interfere also? I would like to know how the VA interprets it and would rule. Any assistance or information would help greatly at this point.
  2. vetadmin

    vetadmin Administrator Staff Member

    The house does not count as an asset by itself.

    If you rent the house, who would the rent payment be made to? If you sell the house, who gets the proceeds? Is the house still in your parent's name?
  3. The rent would be paid to me, since my siblings live out of town, therefore I am handling everything for the property. If we sell, the proceeds are split equally between me and my two siblings. The records at the tax assessor's office show a copy of the donation papers and the tax record shows the names for that address, as one of the sibling's name W ETAL then both my parents-USUFRUCT. I inquired about the ETAL, and was told that there just isn't enough room for all three names, however all three names are on the records. I even spoke to a real estate attorney and title company that does closings on property and was told my parents do NOT own this house anymore, it's already ours. I just want to be sure how the VA will consider it, so I don't jeopardize my dad's benefits.
  4. vetadmin

    vetadmin Administrator Staff Member


    Much of what you are referencing is real estate related and that is not our area of expertise.

    Having said that, if the house were to sell, and there is no way that your parents are going to receive those funds, then it is not an issue. If the rent check is made out to you, again no problem.

    The legalities of the ownership of the home are best addressed by those professionals whom you have already spoken with.

    If the house is not in their names and they are no longer attached in any manner, then you do not make the VA aware of any of this.

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