Are Indirect Monies from Annuity Considered Income?

Discussion in 'Countable Income' started by DJNson, Mar 16, 2017.

  1. DJNson

    DJNson Newbie

    My 91 year old father received approval for Aid and Attendance in 2010. The initial pension included my mother who passed away in 2012. At the time of approval, my parents had a saving account of $8K and a checking account of $3K. All assets were in a family trust prior to 2010. My father, mother and myself were trustees. I am now the fiduciary agent for my father. We had a $37K annuity from the family trust mature a couple of months after the initial A & A approval. For convenience, I triggered the payment of approximately $300 to go directly from the insurance company to their checking account. From 2010 to 2015, first both my parents and then my father lived in independent living. My father is now in assisted living. His present expenses exceed his pension and Social Security by $400 month. The VA is indicating the $300+/month was undisclosed income and are seeking repayment for the 2010 – 2015 period. These monies were not specified for my parents, but was an amount that I directed to them. I considered it as additional support I was providing them. Should this monthly amount be considered income for my parents/father?
  2. Jandy

    Jandy Jr. Member

    Hi DJNson,
    Hopefully someone else will chime in with some advice, but you might want to consult a financial planner/attorney. My feeling--I don't believe the fact that the $300/mo was not specified for your parents, but was merely directed toward them is persuasive. I did a quick search and found research that does indicate that a gift of money may be excludable from income if it consists of regular cash contributions for the purpose of paying for the claimant's maintenance (because I believe that is what you are suggesting--that the money was a gift from you?). However, the fact that the money was a recurring monthly payment from the insurance company that went directly into your parents'/father's checking account seems to undercut this argument.

    Please be aware I am no financial expert and further, I did not deal with this type of issue with my father's A&A application. Again, maybe someone with real experience will weigh in. Either way, I hope you will find some answers so you can get this issue resolved.

    Good luck and keep us posted!
    Last edited: Mar 19, 2017
    Kaylin likes this.
  3. Kaylin

    Kaylin Hero Member Staff Member

    Jandy definitely has it right - you might want to consult a financial planner - a trustworthy one! Make sure they aren't going to try and take advantage of your family. But you should have disclosed the $300/mo. payment to the VA and, unfortunately, I think you will have to repay the VA back.
  4. Kaylin

    Kaylin Hero Member Staff Member

    Just make sure you are only repaying them the proper amount of the $300/mo. extra for that time. Check the numbers.

Share This Page