A Pension that Isn’t Really a Pension
Understanding the VA Pension: A Benefit That Isn’t Really a Pension
For wartime veterans and their families, the U.S. Department of Veterans Affairs (VA) offers a valuable financial benefit to help with the costs of long-term care. However, it is one of the most misunderstood programs available. It’s called the “Veterans Pension,” but it’s not a pension in the way most people think of one.
Navigating the VA bureaucracy can be challenging, and initial applications are often denied due to the complexity of the rules. Understanding what this benefit truly is and how to qualify is the first step toward securing the assistance you have earned.
What is the Veterans Pension?
The Veterans Pension (often referred to as the “Improved Pension” or, more commonly, “Aid & Attendance”) is not a retirement benefit. It is a means-tested reimbursement program for recurring, unreimbursed medical expenses.
For most seniors, the largest and most significant medical expense is the cost of long-term care—whether that is in-home assistance, assisted living, or a nursing facility. This benefit is designed to help you pay for that care.
The Three Tests for Eligibility
To qualify for the VA Pension, a veteran or their surviving spouse must meet three distinct tests:
- The Service Test: The veteran must have served at least 90 days of active duty, with at least one of those days occurring during a recognized period of war. The discharge must have been under conditions other than dishonorable.
- The Asset Test: The applicant’s household must have countable assets below a specific limit set by the VA.
- The Income Test: The applicant’s household income, after deducting their recurring medical expenses (like the cost of care), must be below the maximum pension rate.
Why Professional Guidance is Crucial
Many families are initially denied because they fail the asset or income tests. The VA may correctly state that an applicant has too many assets, but they often fail to explain that there are legal and ethical strategies to restructure those assets to meet the requirements.
Furthermore, it is critical that any planning for VA benefits is coordinated with a long-term strategy for potential Medicaid eligibility. A step that helps you qualify for the VA Pension could unintentionally create problems for Medicaid down the road. An experienced elder law attorney who understands both systems can create a comprehensive plan that protects you and your family.
Don’t Accept “No” as the Final Answer
The VA application process is complex, but a denial is often not the end of the story. If you are a wartime veteran or a surviving spouse in need of long-term care, it is essential to seek professional assistance to understand all of your options.
Our experienced attorneys can help you navigate the rules and develop a plan to help you qualify for the benefits you deserve. Call our office at (919) 256-7000 to schedule a consultation.