Article by Bernard Krooks

The Veterans' Association Aid and Attendance Pension Benefit is a little known and underused benefit available to veterans with disabilities. The purpose of the benefit is to provide supplemental income to disabled or elderly veterans who are in need of the "aid and attendance" of another individual for daily care. An individual's net worth plays a large role in determining eligibility for the benefit, but the VA does take other factors into consideration when reviewing applications.

According to a 2004 study conducted for the VA, only about a quarter of households eligible for the benefit will actually apply over the next five years. In 2007, VA Secretary Jim Nicholson issued a press release, distributed in national publications, intended to inform the public of the benefit. But this small push by the VA to encourage eligible veterans to apply for the pension benefit has, to this point, not had much of an effect on enrollment levels.

What is the Aid and Attendance Pension Benefit?The VA Aid and Attendance Pension benefit is one of two disability benefits that are available to veterans who have served on active duty. The pension benefit is specifically available to war veterans who did not become disabled as a result of active-duty service. According to the VA, a veteran who is in need of a caregiver to perform "basic functions of everyday life" or is housebound may qualify for the benefit if s/he

* Is blind or nearly blind* Is a patient in a nursing home * Proves a need under established criteria

This last point is a matter of some misunderstanding among veterans who may qualify for the benefit. Eligibility determination is based largely upon household income, assets and resources, referred to by the VA as "net worth." While it is known that net worth plays a large role in the eligibility equation, the VA has not issued a specific formula that is used to calculate qualification, nor has the agency named a specific income level that would preclude eligibility. Instead, the VA considers a variety of factors, including household assets, gross household income, income from other sources such as retirement accounts or life insurance, unreimbursed medical expenses, and the life expectancy of the applicant. The younger the applicant, the more assets s/he may own and still qualify for the pension benefit.

According to the VA Claims Adjudication Manual M21-1MR, "In general, the older an individual is, the smaller estate the individual requires to meet his/her financial needs. The VA pension program is not intended to protect substantial assets or build up a beneficiary's estate for the benefit of heirs."

Some veterans may require a "rating" in order to receive the benefit. Generally, lower income veterans will qualify without a rating. Receipt of a rating from the VA allows disabled veterans with higher incomes who might otherwise be ineligible to receive a pension benefit. Rated, higher income individuals applying for a benefit must typically be paying for extensive medical costs and ongoing and expensive long- term care in order to qualify.

Veterans who believe they may qualify for the Aid and Attendance Pension Benefit should consult an elder law or special needs planning attorney to expedite the application process.

About the Author

Bernard Krooks is a New York Elder Law and New York Estate Planning lawyer with offices in White Plains, Fishkill, and New York, New York. To learn more, visit Littmankrooks.com.

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