Please clarify asset amount

Discussion in 'General Discussion' started by krosen, Nov 20, 2007.

  1. krosen

    krosen Newbie

    Thanks for providing this site!

    My parents live in southern Illinois and are 84 years old. My father suffered a stroke two years ago. He is at home and my mother is his care giver. She is now recovering from congestive heart failure. They want and need to move into assisted living.

    We have been told that because of their age, their assets need to be no more than $40,000 excluding their home and vehicle to qualify for the Aid & Assistance benefit. Is this correct?

    Thank you,
    Karen
     
  2. veteranadvocate

    veteranadvocate Full Member

    Karen,

    This is not correct. Let me gather some info together for you and I will post the additional information tomorrow. Welcome aboard and please help us to spread the word about this benefit. Thank you for taking the time to look into this benefit that your father earned with his service.

    I am assuming that you read and determined that your father meets all of the other requirements. I will only be addressing the assets amount unless you have additional questions.

    Come back tomorrow for additional information.

    VeteranAdvocate
     
  3. veteranadvocate

    veteranadvocate Full Member

    Karen,

    I hope the link listed below and the information contained in this reply will give you a better insight as to how the VA looks at and determines net worth.

    http://www.vba.va.gov/bln/21/pension/vetpen.htm#7

    What about net worth?

    Net worth means the net value of the assets of the veteran and his or her dependents. It includes such assets as bank accounts, stocks, bonds, mutual funds and any property other than the veteran's residence and a reasonable lot area. There is no set limit on how much net worth a veteran and his dependents can have, but net worth cannot be excessive. The decision as to whether a claimant's net worth is excessive depends on the facts of each individual case. All net worth should be reported and VA will determine if a claimant's assets are sufficiently large that the claimant could live off these assets for a reasonable period of time. VA's needs-based programs are not intended to protect substantial assets or build up an estate for the benefit of heirs.


    The following information is from the VA regulations. This is where the $80,000 figure comes from. It is not the same for every case but it's a point to work from. Of course a veteran with a spouse may be entitle to more than a single veteran or just a widow. There's several factors that the VA will take into consideration. Even the cost of living where the veteran and/or widow lives.


    M21-1MR, Part V, Subpart i, Chapter 3, Section A

    b. Review of Net Worth Information

    Review the net worth information provided on the application to determine if it is reasonable for the claimant to consume some of his/her estate for maintenance. A net worth administrative decision should be made if it is determined that the claimant’s net worth should be used for maintenance.

    Note: Pension is based on need and that need does not exist if the claimant’s estate is of such size that he or she could use it for living expenses.


    c. Requirement of Net Worth Administrative Decision

    A formal net worth administrative decision must be completed if

    • the claimant has an estate of at least $80,000, and
    • it has been determined that net worth is not a bar to entitlement.

    Note: Always consider a claimant’s net worth even though it might be below $80,000.
     

Share This Page