Expenses exceed income: Can applicant borrow from family while waiting?

Discussion in 'Tips and Resources' started by tommietwp, Oct 4, 2013.

  1. tommietwp

    tommietwp Newbie

    My mom had to move into an assisted living facility before filing for A&A, and did not have enough money to meet monthly expenses. She will have enough if her application is successful. I am confident of her eligibility and so is the facility. Thank you for providing information on your site that explained how to quickly establish a benefit date. Since mom couldn't pay all of her bills and expects to get paid back to the date she notified the VA, my brother used some of his retirement savings to pay some of her assisted living facility bills, which my mother would pay back if/when she gets her award. It took us a couple of months to get everything together, and some of the assisted living facility bills, sent with the application as proof of expenses, showed my brother, her son, as the payer. My mother explained on her application that because her expenses exceeded her bills, she had to rely on her son to help pay until her application was finished. After a couple of months she got a letter from the VA asking her how much money she was getting from her son per month, and how long that would continue. They asked her to resubmit her income/expenses, including those amounts. They also stated that the assisted living invoice receipts paid by someone else would not be reimbursed. As of now, my brother will no longer help by paying expenses. The assisted living facility is willing to wait for the the amounts that my mom can not pay, until the award. My mom was borrowing that money from my brother until she got her award, and he used money he needed for his mandatory retirement. He paid directly to the assisted living facility, and did not place any money into her bank account. He is also holds that bank account with her, so he can write her checks when her arthritis is bad. He puts no money in nor withdraws any for himself. Can my mom just explain the circumstances and be able to recover those expenses for which my brother loaned her the money?
  2. vetadmin

    vetadmin Administrator Staff Member

    OK - this is a bit of a mess here, and here's why.

    The VA rules on the applicant's expenses for care. The goal is to show that the applicant is either at zero or negative at the end of the month demonstrating the need for the pension to help offset costs of care.

    By submitting invoices that were paid by another party (brother) that kind of undermines that.

    When family members do help offset or cover expenses, they need to do so by separate check, and do not put the money in the applicant's account.

    You need to tell the VA that your brother is no longer able to offset the shortfall. You can do an informal loan agreement between the two of them for reimbursement after the back award comes through. This is also helpful in the event that Mom passes before all accrued payments are made as he could file against that amount given he has paid care expenses on her behalf.

    As it stands now, explaining to the VA will not cause the VA to give her credit for the expenses he paid for her. They are only looking at her income, and what she is paying and where that leaves her at the end of the month. Sorry.

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