success for one parent, questions for another

[ilene]

Hi, I filed papers for my Dad last Feb, everything went very smoothly.  This Nov, is actually going to be his first direct deposit check, he recieved his last check  of back payment from the month after he filed last month.  My thanks for all the help I recieved.

Now for the next questions.  My husband is thinking of applying for him Mom, my father in law passed 1 1/2 years ago.  He has a consultation with an attorney who said that if she puts everthing into a grant or trust, which will cost $5,000 to set up, my mother in law would be eligable for aid and attendence even though her assets are greater then $200,000. 

When I heard this I found it hard to believe since I feel all vet and their wifes would be doing the same thing if it was.

ilene

[swainlaw]

This is true.  The VA is only allowed to look at the net worth of the claimant from the date of the application until they are no longer receiving benefits.  If Congress did not want the claimant to be able to gift away assets they would have a penalty period like medicaid.

Note a trust is not required.  The assets can be titled into a child's name.  The reason for a trust to to protect these assets.  The use of a trust can be complicated.  The claimant cannot be a beneficiary of the trust or a party to the trust in any way.  They must have separated themselves from these assets.  This is an advanced planning strategy and your attorney must have the experience to do this right.  Trusts that will be accepted by Medicaid will not always be acceptable to the VA.

The fees that were quoted are reasonable for this level of planning.

What we must keep in mind is someone with $200,000 could easily run out of assets during their life.  The Va pension could prevent or postpone the date they run ouit of assets.  It will not make anyone rich!

[KarenO]

This benefit is for people who have under $80,000 worth of assets.  That is morally wrong to work the system to get benefits for someone who has the money to take care of themselves.  When the assets are below $80,000 - then apply. 

[pologal1979]

HELL YA. THANKS KAREN. AT LEAST THERE ARE SOME MORALLY DECENT PEOPLE OUT THERE.

THIS IS WRONG. THIS IS CALLED WORKING THE SYSTEM. AGAIN, PENSION IS AN INCOME/NET WORTH BASED BENEFIT.  IT IS NOT MEANT TO PROTECT ASSETS. IT IS MEANT TO HELP PEOPLE SURVIVE.

TELL YOUR HUBBY THAT IT IS NOT A GOOD IDEA TO DO THIS. IF MOM IN LAW CAN LIVE ON HER ASSESTS, THEN SHE SHOULD NOT GO AFTER GOV'T MONEY. WHY SHOULD THE TAXPAYER GIVE HER MORE MONEY WHEN SHE DOES NOT NEED IT?

I DISTAIN LAWYERS AND LEGAL TYPES WHO ENCOURAGE PEOPLE TO DO THIS.

IT MIGHT BE OK LEGALLY TO DUMP THEIR MONEY BEFORE APPLYING AND VA WILL NEVER KNOW. BUT WHAT THEY ARE DOING IS WRONG ON SO MANY LEVELS.

AGAIN, DO NOT FOLLOW THIS HORRIBLE ADVICE.  REMEMBER, THE LAWYER DOESNT GIVE TWO HOOTS ABOUT THE OLD LADY, ALL THEY CARE ABOUT IS THE $$$$$ THEY MAKE OFF OF THE OLD LADY!!!