You have to try to accept some inconvenient truths when you are planning ahead for the future. After your active retirement years start to wane, it may become harder and harder for you to go about your activities of daily living.
At some point, assistance may be needed, even if it is hard to envision it right now. Just over 50 percent of seniors need some type of paid care eventually, and many others get the help they need from unpaid family members and friends.
When it comes to the financial part of the equation, long-term care is very expensive, even if you are receiving it in your own home. Medicare is not the solution, because it does not cover custodial care.
Fortunately, there is a partial solution for some veterans in the form of the Aid and Attendance Pension.
Wartime Veterans
You have probably heard about the retirement pension that military veterans can receive after a minimum of 20 years of service. The VA Aid and Attendance Pension is entirely different.
In order to qualify for this benefit, you must be able to prove that you need help with your day-to-day needs. The length of service requirement is 90 days for someone that began their service prior to September 7, 1980. It is 24 months of active duty for those that joined at a later date.
This is a benefit for wartime veterans, so in addition to the length of the tour, at least one day of wartime service is required.
Of course, since the Aid and Attendance Pension is intended for people with disabilities, you have to be able to prove that you need assistance with your activities of daily living.
Financial Requirements
The pension was created for veterans that have a certain level of financial need, and in 2018, a hard asset limit was established. There are annual adjustments to account for inflation, but in 2023, the net worth limit is $150,538.
Your net worth is calculated by adding your income to your assets that are considered to be countable. If you are a homeowner, the property would not count, and one motor vehicle is also exempt along with items in your home that would not be moved if you relocate.
You cannot find out that you need living assistance and give assets to your loved ones so you can qualify for this pension immediately. There is a three-year look back period, so divestitures must be completed at least three years before you submit your application.
If you violate this rule, you are not permanently ineligible. Your eligibility would be delayed by one month for every $2,642 that you transferred.
2023 Veterans Aid and Attendance Pension Rates
A veteran that does not have any dependents can receive a maximum benefit of $26,752 in 2023. For a married person or someone with another dependent the benefit tops out at $31,714 this year.
In the unlikely event that you are a qualified veteran that is married to a former service member that qualifies for the pension, the max benefit would be $42,433.
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Our attorney S.J. Khalsa goes the extra mile to provide educational opportunities through the workshops that he conducts on an ongoing basis. This is a fantastic way to make the connection and walk away with a more thorough understanding of important estate planning and elder care matters.
There is no charge to attend our workshops, but we ask that you register in advance so we can reserve your spot. And if you would like to get the same info from the comfort of your own home, watch our in-demand webinar. You can see the dates and obtain on-demand webinar access if you head over to our workshop page.
While he was in law school, he worked as an aide to the late John Sparkman, Senior Senator from Alabama. This gave him the opportunity to gain intimate knowledge of the workings of government, and this background has served him well.
He started his private practice in New York in 1974, the first Sikh to be admitted to the bar in the state of New York.And in 1995, when he narrowed his legal focus to the areas of estate planning and elder law, the prestigious American Academy of Estate Planning Attorneys accepted him into their membership.
Special needs planning is an important aspect of the field, and Mr. Khalsa has intertwined his empathy with his expertise to become a leading advocate in this area. Shortly after the Education for All Handicapped Children Act was enacted in 1975, he won the first case in New York that was adjudicated under this law.
S.J. Khalsa has a penchant for philanthropy, and he has raised well over $20 million for charities nationwide. He is a deeply spiritual man who represents the Sikh religion at religious and interfaith gatherings all over the globe.
He believes that successful professionals should contribute to the fabric of their communities, and to this end, he works with law enforcement in New York.
Mr. Khalsa is a graduate of the FBI Citizens Academy program, and he is active in their Alumni Association. He is a member of the FBI/New York Police Department Joint Task Forces on Civil Rights and Hate Crimes, and he sits on the Community Engagement Council that advises the FBI Assistant Director for New York.
He is the author of the highly acclaimed book, Estate Planning Essentials: A Guidebook for Modern Families. Lawyers of Distinction recognized him for his excellence in 2020, naming him a 2020 Power Lawyer, and he is a member of the prestigious American Academy of Estate Planning Attorneys.
Mr. Khalsa lives in Manhattan with his wife, and he has two grown children and four grandchildren. He likes to travel, and he is an avid golfer. As the co-owner of Kundalini Yoga East in New York along with his wife, he instructs practitioners and aspiring yoga teachers.
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