Form 21-527EZ Line 25: Net Worth Section

Discussion in 'General Discussion' started by C_Vink, May 24, 2016.

  1. C_Vink

    C_Vink Newbie

    I have a two part question regarding this particular line on this form.
    My father inherited my mother's IRA in the amount of $31K. We plan on using this money towards his assisted living expenses, however my father only receives a one time minimum distribution at the end of each year of approximately $2500.00. This is due in part my father receives a heavy tax bill at the end of every year and any money withdrawn from the IRA is taxable. Do I record the total amount in the IRA or just what he receives as part of the yearly distribution?

    I am just afraid of this being counted against him even though within a year the money will be fully depleted. If I file and they don't grant him A&A because on this money, can we refile/or amend again after the money has been fully depleted?
     
  2. Kaylin

    Kaylin Hero Member Staff Member

    C_Vink,

    I answered your IRA account question on the other forum article you posted on, but based on the information you just provided I would go ahead and list the full IRA amount on the 21-527EZ. You can always explain that he only gets $2500.00 each year on the cover letter if you like.

    Yes, you can always update the VA on his financial standing if he is denied the first time around. If he spends down that money and no longer is above the asset level of about $80,000 then you can send in a Statement in Support of Claim (along with supporting documents like bank statements) to update the VA and ask for reconsideration.
     
  3. C_Vink

    C_Vink Newbie

    Thank you. Your reply is most helpful. This site has been a wonderful resource.
     
  4. Kaylin

    Kaylin Hero Member Staff Member

    You're welcome! Glad we could help. :)
     

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