Confused on how to handle loan for assisted living payment

Discussion in 'General Discussion' started by JJsDaughter, May 28, 2015.

  1. JJsDaughter

    JJsDaughter Newbie

    I am so confused that I am not even sure how to ask my question!

    My father is 82 and is no longer able to live in his own home. His only source of income is social security - $1313.00/month. Earlier this year I found an assisted living facility and put him on the waiting list. He is finally in but until he sells his house he is still paying monthly mortgage payment, utilities, car payment and car insurance so he basically he has very little money left at the end of the month and cannot pay for the assisted living. The assisted living has no payment plan so I am loaning him money to pay the monthly fee. I was told to put the money into my dad’s account every month so the payment would come from him. After reading this forum I am not sure if this is correct info.

    If I continue to put the money into his account, should this be considered "Other Income" in section VIII form 21-527EZ. Is it possible to indicate that this money is a loan and he will be paying it back to me once he receives the benefit or sells his house?

    If I pay the assisted living fee then there will be no record of it on the bank statement so how does the VA determine that my dad needs assistance paying this fee?

    I thought I read that there is no "look back" period so does this mean the VA will only examine the bank statement we include in the filing?

    Thanks in advance for your help
  2. vetadmin

    vetadmin Administrator Staff Member

    Do not put the money into his account!

    You pay the ALF directly for any shortfall he is not able to cover, or if you are paying all of it, but he has to be able to show a financial need for the pension. If he is paying just for the house, this is not going to work. The accounting is not clean and you don't want his account showing additional funds from you.

    It may be that you need to let Dad pay the facility, and you pay the house stuff. When the house sells, he will have to report that, and more than likely it will stop the benefit until he spends back down.

    This is a difficult situation as he needs to show the care expense, and he won't be able to claim the repayment to you out of those proceeds for VA purposes.

Share This Page