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