Two Questions about income/assets

Discussion in 'General Discussion' started by cookbros, Dec 3, 2012.

  1. cookbros

    cookbros Newbie

    I am writing on behalf of my Mother, who is a widow of a Korean War and WWII Veteran, who now resides in an assisted living facility.

    After applying for VA A&A, she sold her home, which was part of a revocable living trust. The proceeds of the sale are now part of that trust. After the sale of the house, she received notice of approval of VA A&A benefit.

    She received 13 months worth of benefit in a lump sum, which raised her total assets to slightly over $80,000 (including proceeds from home sale).

    We have two questions.
    1. Are assets held in a revocable living trust subject to the $80,000 limit?
    2. Does the lump sum payment of benefit affect the $80,000 asset cap, or does it "push" that limit?

    Thank you for any assistance and guidance with these questions.

    By the way, we followed Debbie's guidelines and instructions in applying for Mom's benefit, and we had no trouble at all.
     
  2. Fit2009

    Fit2009 Sr. Member

    Hi,
    Yes revocable trust assets count - whether the disclosure of the assets will remove her from the program or not remains to be seen. You have thirty days after the sale of the home to disclose the sale to the VA. You definetely want to disclose, if they find out on their own, they can be punitive and assume she sold at the beginning of the year or the start of the award, whichever results in the most moeny being returned to the VA - so if you report yourself, the most they can do is stop it and you inform them as the assets decline to get back in, don't report and they can ask for many months back. Note that they often let you remain in the program despite having more than $80K. And occasionally they don't address the fact that you sold the house for a year or two, so keep the proof of notification in case they approach you in a year or two saying you did not notify them.
     

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