The Veterans Administration Final Rule 8320-01 went into effect on October 18, 2018. This rule established new financial eligibility qualifications for Department of Veterans Affairs needs-based benefits, including Aid and Attendance.
Aid and Attendance is the veterans' benefit most often used to pay for long-term care. Although this rule includes a look-back period and net-worth limit similar to those of Medicaid, Medicaid and Aid and Attendance are separate programs administered by different federal agencies.
The new eligibility qualifications help clarify the net-worth limit and what assets are included in that calculation. Transfers to trusts or annuities may also be included in the calculation unless certain conditions are met, such as maintaining the ability to control and liquidate the assets in the trust. Clients need to be aware of the newly created 36-month look-back period and five-year penalty period. The good news is that this rule provides an opportunity to correct a penalized asset transfer if all assets are returned to the veteran within 60 days of the penalty decision notice.
© Copyright 2019 Commonwealth Financial Network
Back to Archive