Sold the House Now What?

Discussion in 'General Discussion' started by brunn2, May 9, 2016.

  1. brunn2

    brunn2 Newbie

    I filed for A&A for my mother in October 2015 at which time she still owned her home which was not considered an Asset. In January 2016 we sold her home which the proceeds became an Asset. I hadn't heard anything from the VA so did not report the sale. In May 2016 I received the A&A award for my mother. When I sold the house I used a portion of the proceeds as well as her Life Insurance policy to pay for a pre-paid funeral (my mother is still living). What do I need to do now to notify the VA of the sale, what do I have to include for supporting documentation, is the pre-paid funeral a deduction from the sale proceeds. Thank you.
     
  2. Kaylin

    Kaylin Hero Member Staff Member

    brunn2,

    You do have to tell the VA about the sell of the home. You have to show documentation of the amount the home sold for, then show the documentation for the pre-paid funeral. Any bank statements would be helpful in showing proof of the sell of the home and the purchase of the pre-paid funeral. I would also include a Statement in Support of Claim form 21-4138 to explain exactly what happened. Your mother's A&A benefit could be adjusted or temporarily stopped depending on how much money she now has to her name as "assets" since the sell of the home.
     
  3. brunn2

    brunn2 Newbie

    Thank you.
     
  4. Kaylin

    Kaylin Hero Member Staff Member

    You're welcome!
     
  5. vetadmin

    vetadmin Administrator Staff Member

    brunn2,

    As an issue you need to be aware of is the fact that there are 4 months that more than likely Mom would be over income, and the VA may ask for those 4 months of payments back and suspend the pension until she is financially eligible again. Without knowing how much she profited from the sale we can only base our answer on the assumption it was a fair amount of money.

    You do need to notify them as soon as possible, and get things straight for her.
     
  6. brunn2

    brunn2 Newbie

    When she sold the house her take was $84,000. I put $14000 in the funeral fund and she had about $4000 in the bank. She also had a small pension and $770 Soc Sec. With the lump sum from the VA she right now has about $81,000 but that will decrease the first of the month when her bills come due and would put her under the $80,000. Without the lump sum from the VA she never would have been over $80,000.

    Other than the Support of Claim form, do I also attach an updated Asset form?
     
  7. Kaylin

    Kaylin Hero Member Staff Member

    brunn2,

    By asset form do you mean the 21-534EZ form that you originally sent in listing her income and expenses? No, you would not resend this form in. Simply update the VA on the sell of the home with any bank records, statements, etc. that show her increase in assets from the sell and then her prepaid funeral expenses.
     
  8. brunn2

    brunn2 Newbie

    Will be sending in the Statement in Support of Claim form today with the supporting documentation. Hope all goes well.
     
  9. Kaylin

    Kaylin Hero Member Staff Member

    Best of luck!
     
  10. brunn2

    brunn2 Newbie

    Where do I send the Form 21-4138? I have several different addresses from correspondence with them. I use the Philadelphia branch, should I just send it to the same address I sent the application?
     
  11. Kaylin

    Kaylin Hero Member Staff Member

    Yes, you should send it to the same address you sent the rest of the complete application.
     
  12. brunn2

    brunn2 Newbie

    Wish me luck. I have to send in a response with my mothers new Net Worth after the sale of her house. She is right at the border of the Asset limit so I am hopeful she will continue to receive aid although she may have to pay back a few months.
     
    Kaylin likes this.
  13. Kaylin

    Kaylin Hero Member Staff Member

    Best of luck!
     

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