Unexpected income

Discussion in 'Countable Income' started by InTheWoods, Jul 9, 2015.

  1. InTheWoods

    InTheWoods Newbie

    My father-in-law has been receiving the full A&A benefit for about a year. My brother-in-law has been repaying a loan, and the monthly payments are counted as income. My brother-in-law is thinking about paying off the remainder of the loan, $21,000, as a lump sum, but we are worried about how this could affect the A&A benefit. My father-in-law's medical expenses for the year will be about $51,000. Without the lump sum payment, his income would have been around $47,000. With the lump sum, his income will be about $57,000. This looks OK for yearly income, but will getting the $21,000 all at once be a problem?
     
  2. vetadmin

    vetadmin Administrator Staff Member

    Not really understanding when you say repaying a loan. Was the loan from the FIL to the BIL?

    If yes, you don'[t want to co-mingle these monies. Better than the BIL just pay the medical bills directly without this going to the FIL.

    If that is not the situation, please explain further.
     
  3. VA Legal Team

    VA Legal Team Full Member

    If it's counted as income it should still be counted over the following 12 month period; the real question is does the 21k change their eligibility based on net worth? The VA will want to double count that 21k as income and net worth.
     
  4. InTheWoods

    InTheWoods Newbie

    The plan was for the BIL to give us a cashier's check that we would deposit into an account owned by my husband & BIL so my husband could access the money to help pay the rent for the assisted living facility. Unfortunately, the check was made out in care of the trust and can only be deposited into my FIL's trust account. We contacted the VA agent who handled the fiduciary and she said since there is only a few thousand dollar difference between my FIL's expected expenses and income for the year, "it shouldn't have an impact." "Shouldn't" isn't the same as "won't" and since everything tends to go wrong with us, we are going to proceed with Plan B. My FIL has about $17,000 left in his savings. We will use that money to help pay his assisted living expenses for the rest of the year and then deposit the check in January. In 2016, his expenses will be more than his income, even with the $21,000, and his savings will be very low. Fingers crossed! To add to our stress levels, nursing homes in our area are no longer accepting patients and people have to go to facilities several hours drive away. A perfect storm.
     

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