Rental income/Fiduciary questions

Discussion in 'General Discussion' started by Hope, Jan 26, 2008.

  1. Hope

    Hope Newbie

    Dad is in assisted living, and step mom is now staying with her family as she cannot safely live alone. We're trying to decide what to do with the house. If we spend a few thousand to fix up and then rent, how do we answer the Rental income in next 12 months question on A&A form? Gross rent income? or net after expenses of getting the house ready and pay ongoing taxes, insurance, etc? Does it make any difference if the house is in Revocable Living Trust? Any insight or suggestion will be appreciated.

    Also, Dad has dementia and I have POA and am filling out the application with some help from Assisted Living administrator. Dad did sign the application, but doesn't understand about his finances and costs of assisted living. Reading on your site about the Fiduciary appointment has me concerned. Is there anything i can do on the initial application to minimize the delay in getting approval/benefits?

    By the way, total yearly medical expenses for dad and step mom exceeds current income by at least 10,000. Assets are <60,000 and House is worth <100,000. Thank, i'm so glad i found this web site tonight.
  2. veteranadvocate

    veteranadvocate Full Member

    The VA has a form for everything. The following link will take you to the site for the proper form to report income from rental property/business.

    I would recommend that you speak to an ‘Elder Law Attorney’ before submitting your application to the VA. The VA does not have a ‘look-back clause’ like Medicaid. You may be better off to get rid of the property before making application or the ‘Elder Law Attorney’ may be able to offer some other suggestions.

    You do not need a fiduciary until the claim is approved. I would not bring this issue up in the beginning because it could generate a red flag for the VA. If the VA proposes to appoint a fiduciary after the claim is approved, we can provide you with some pointers. Appointing a fiduciary can slow the processing considerably.

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