Fiduciary account confusion - need answers

Discussion in 'General Discussion' started by annieb, Feb 12, 2008.

  1. annieb

    annieb Newbie

    I know this question has been beat to death here, but my family needs some honest answers fast.

    Mom (Vet spouse) has funds over the 60,000 limit. About 2 yrs ago POA and I moved 80,000 to an account under 2 siblings names.
    Mom's name is not on the account. Why would the VA care about this? Why is our "VA Helper" suggesting we move about 50,000
    to a fiduciary account that is with an insurance company? Is this for his benefit too?

    Will the VA trace these funds?

    Is there IRS issues with this?
     
  2. veteranadvocate

    veteranadvocate Full Member

    I know this question has been beat to death here, but my family needs some honest answers fast.

    Mom (Vet spouse) has funds over the 60,000 limit. About 2 yrs ago POA and I moved 80,000 to an account under 2 siblings names.

    Mom's name is not on the account. Why would the VA care about this?

    Any assets that your Mother has available to her will be considered available to her and available for the cost of her care.

    Why is our "VA Helper" suggesting we move about 50,000
    to a fiduciary account that is with an insurance company? Is this for his benefit too?

    Some financial planners will assist individuals to place funds into trust funds, etc. Most will and do gain some monetary awards for their services.

    Will the VA trace these funds?

    Currently the VA does not have a ‘look back clause’ like Medicaid does. They only require available income and assets from the date of the application.

    Is there IRS issues with this?

    You should check with your accountant or a tax preparer on this question. I would think that someone will have to account for the funds if it is taken out of the widow’s account.
     
  3. annieb

    annieb Newbie

    the money the VA helper wants us to move to an insurance/annuity acct is not in her name, hasn't been for 2 yrs.
    So why move the money if the VA has no look back?

    Is there a clear positive "yes" there is NO look back from the date of the application?

    We understand the need for the fudiciary account and of course will set that up. Mom has other funds she uses
    for her living and medical in another bank. The funds the VA helper wants to is her money, we do not use it for
    ourselves (don't need it), but we do not feel the urgency to move dollars the VA has no clue of!!
     
  4. veteranadvocate

    veteranadvocate Full Member

    There are no questions on the 21-526 or the 21-534 that ask for any income information or asset information prior to the date of application. I have been working with veteran's benefit claims for over 27 years and have never once known the VA to ask about income or assets prior to the date of application.
     

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