The Department of Veterans Affairs is proposing changing eligibility rules for VA Aid and Attendance Benefits. Specifically, it is proposing an asset limit, a look-back period and asset transfer penalties for applicants applying for pensions, like the Aid and Attendance benefit. Currently, there is no prohibition on transferring assets prior to applying for benefits.
The proposed rule would create a 36-month look-back period and a penalty period of up to 10 years. The penalty period would be calculated based on total assets transferring during the look-back period exceeding the new asset… Read the rest
Why it is Used
Special Needs Trusts are trusts established for disabled individuals under the age of 65. The goal of the trust is to hold funds that the disabled individual may have received from settlement, inheritance, or earned or received prior to the onset of a disability to improve quality of life without effecting eligibility for programs like Medicaid, SSI or SSDI. Funds in a special needs trust can be used for extras like:
• Attendance or participation at recreational or cultural events;
• Travel and vacations;
• Participation in hobbies, sports or other activities;
• Funds for special… Read the rest