Currently exceed net worth limit for VA benefits. Is there a way to pay down assets legally without triggering lookback rules?

Bobdunn, have you considered the issue of a trust for the med mal awards?    Ask your elder law attorney about this.  If he/she doesn't know, contact older attorneys (including ones who focus on trusts) for advice.

The funds could be held in trust specifically for long term care.  I'm not very familiar with this method, but it's worth investigating.    There might an alternate way to spending down the funds.

We were advised to do this so that my mother-in-law could receive Aid and Attendance. However, her long term care policy is currently paying for assisted living. Can't you spend the money on their care until it's low enough to qualify? Or is this person wanting to give money away?

Awhile back I started the process of acquiring Aid and Attendance veterans benefits for my mom. My dad served in WW11.

There was a financial limit that a widow could have. If her money exceeded this limit, she was not eligible to even apply for benefits. So, the amount of money that you have in the bank is looked at.

Did the VA clearly tell you that you have exceeded this dollar amount?

Spoke with va representative the other day. My understanding is at the time of application my mom would be eligeable for benefit if she has less than $135,000 assets. ( not including her home) , however when she does sell her home if the proceeds put her assets over $135000, the benefit is stopped until it goes below $135 again. Then she would have to reapply.

This is something new I think.

Are you talking about look back rules concerning Medicaid or VA?

Are you sayings that your parents have accumulated to much money to remain eligible for VA benefits?

This question really needs to be asked to the social worker that has their case. There are variables that effect the answers and you really don't want to get this wrong. Speak with their case worker to ensure that they are not compromised by crowd sourcing information.

Bob, the benefits will not be stopped for good. Ask the VA how it works when you have to self pay until the assets are depleted.

Do they suspend the assistance or will you need to do the complete application again.

Yours isn't the 1st time they have dealt with this situation. It will be okay. You July need to speak with whomever is providing the assistance, you or the attorney but, I would ask myself 1st and avoid a big attorney bill.

If you're near a VA facility try contacting a Claims Examiner there. I found the one in my town to be very helpful.

There’s a three year look back for VA. Consult your VA representative.