Follow
Share

My 98 year old father is moving from his home into a retirement community. I have read that income from the rental or sale of the home will affect VA Aid and Assistance benefits although the home is not counted as an asset in determining eligibility for or amount of Aid and Assistance. Can he convey title to his heirs and then the heirs dispose of the property as they like without affecting VA Aid and Assistance benefits?

This question has been closed for answers. Ask a New Question.
Another though, IF it’s feasible for dad to just continue keep the house & left vacant and pay for house costs and his retirement community, at 98, that could be the best plan. Tax wise for the heirs it’s MUCH better to get house after death due to capital gains.

If bought ages ago & now worth lots more the cap gains will be significant.
Helpful Answer (1)
Report

If I’m not mistaken the new VA rules have a 3 year look back for covered asset transfers with penalty imposed. The house is viewed as a “covered asset” for VA.

VA penalty runs differently than Medicaids state by state R&B transfer penalty divisor equation. VA uses a formula as to whether the transfer makes their net worth excessive and places penalty if so.

John Roberts, who is one of the experts on this site, has a really great series of articles he’s written on VA and how the 2015/2016 changes will affect VA benefits. Please read them and speak with a VA benefits specialist before he gives his house away. He probably cannot afford to have VA benefits suspended at age 98.

Also VA is changing RX system this year. There is an increase in the copay and a change in the mail order system. If I’m not mistaken, now to get RX filled for free, RX need to be filled at an on-site VA pharmacy. Like prescriptions get done at the in house pharmacy at at VA hospital or VA retirement home with a clinic with full pharmacy. This is being done as a part of the changes coming from the 2015/16 revisions for cost containment within VA.
Helpful Answer (1)
Report

This question has been closed for answers. Ask a New Question.