Veterans or widow(er)s of veterans may be entitled to a tax-free monthly pension to offset the costs of home health care, assisted living or nursing homes. Many veterans either know nothing about the benefit or assume they don’t qualify because they didn’t retire from the military.

Who Qualifies?

The main requirements for a pension for a veteran or widow(er) are:

• the veteran served at least 90 days of consecutive active duty service, one day of which was during a war-time period;

• the veteran’s discharge was not dishonorable;

• the claimant’s income and assets are under certain limits; and

• the claimant has a permanent and total disability.

Assets

The Veterans Administration looks at whether a claimant has suffi cient means to pay for care. Although there is no specified limit on the amount of assets, the commonly used amount is $80,000, excluding a home, car and personal belongings. Because there is no penalty for transferring assets, it is possible for a claimant with a greater net worth to create a plan to preserve assets and still qualify.

Income

Even if a claimant’s income exceeds the maximum limit, medical expenses can be applied to reduce income. Home health care, assisting living, or nursing home costs will offset a claimant’s monthly income and allow the claimant to qualify despite the income limit.

Disability

To meet the disability requirement, the claimant’s doctor must confirm that the claimant is house-bound and in need of assistance from another individual. The disability does not have to be service related. People aged 65 or older are presumed to be disabled and are not required to be rated as disabled under the VA schedule.

Benefits

There are three types of pensions available, each with different eligibility requirements and each paying different amounts. The largest pension benefit is called Aid and Attendance, and is available to a veteran or widow(er) who is either blind, living in a nursing home, or in need of assistance to manage the activities of daily living.

In these difficult economic times, an extra $1,949 a month in tax-free income is not something to ignore. If you’re a veteran or widow(er) who might qualify, or if you have a family member who might qualify, now is the time to get started on the application process.

Information and assistance is available online at www.va.gov through veterans’ service organizations, and through attorneys or other agents who have been accredited by the Veterans Administration.

by Debra Robinson

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Debra Robinson is an Alpharetta attorney and is accredited by the Veterans Administration. Contact her at 770.817.4999 or  drobinson@robinsonmiller.com