My Father will not take the Pension and Aid he is entitled to as a WW2 Veteran because one of my brothers says it is fraud. Advice?

I hear some "squawking "regarding Medicaid;
This why consideration of Medicaid when qualifying for the VA pension is important:
I appears doubtful to me that Home Care, Assisted Living, or potential nursing home EXPENSES, in years ahead can be maintained in his financial condition,
So just "giving it away", improperly (His assets) to get the benefit of $1,788 a month plus his income may NOT fully support the increasing monthly care expense later

So in a couple years or sooner, after he has in an UNPLANNED way reduced his assets, and may need Skilled Nursing, Medicaid will say: "going back 60 months from application what happened to the assets"?! Triggering a DISQUALIFICATION PENALTY PERIOD

Proper planing for a senior in these cases for both VA and Medicaid purposes, is no different than taking your IRS deductions,

There are indeed proper ways to do this. Another thing to remember; It is simpler to enter a CHOSEN Nursing home under private pay, that accepts both payments of private and Medicaid, than to be assigned one not of your choice.

Asset preservation/protection plans are indeed very important, and ALL cases are individual.

what I was thinking, vstefans, VA allows for a caregiver agreement

thank u xo

I think the brothers saying that giving money away to qualify for the pension and aid is in fact fraud may well be right. An eldercare attorney or estate planner might know. In the Medicaid world, there is something called a Miller trust that helps people who are just over income for Medicaid to qualify, but that might or might not apply here. A more legitimate measure might be to do a contract for providing care for pay for the brothers who want to do that.

Remember that your father's money is for your father's cost of living. Just because he's not spending it, doesn't mean that he should use it for the grandkids colleges/higher education with the misguided reasoning that they Both benefit from this. This is a dangerous road you're thinking of. From my point of view, an outsider, reading all the posts, it sounds like you think he ought to share his money for your children and nieces/nephews colleges. This does not sound right to me. That's why they have scholarships and loans. If the kids had wanted to go to college, there are counselors in high school who could have provided guidance on achieving this - good grades, extra curricular activities, summer school classes so that in their senior year, they can have a part-time job in the area that they plan to major in, etc... I see nothing wrong if the grands help out around your father's home - with pay that is not exaggerated for the work provided. I agree, it's best to see an expert in this area to avoid any pitfalls.

Medicaid is mentioned because if he ever - for some reason - may need Medicaid, he will have problems if he's been giving money/assets freely on the look back period.

LSS, perhaps it would be best to get hold of a copy of the regulations and see what they say about gifts. I'm in the UK so our rules are completely different (and our veterans' allowances are deplorable), but usually there are broad parallels: I'd expect there to be some guidelines about how much your father can gift to his grandchildren every year without anyone calling it into question. There is also no reason why he shouldn't pay them to do work that he would otherwise pay someone else to do, but it would have to be at the market rate. In any case, though, I really wouldn't stray into the territory of trying to whittle down his capital with the primary intention of making a claim. It could get him into all sorts of stressful hot water, so if he isn't happy about the idea don't attempt to persuade him - even if you do get advice that it's not technically fraudulent, which I think you'd better check anyway.

Thank u for the clarification on fraud Countrymouse. Willful Divestment. The Reasons to consider this? All the grand kids are either just entering or just finishing college, and the option of helping them with their loans and getting a head start on life while their grandpa is still alive is beneficial to both.. and also the grand kids can actually go cut grandpas lawn, or clean his house, or drive him to the doctors or do his grocery shopping and earn alittle income too.. Some may say, u shouldnt need money to visit ur grandfather.. TRUE, but there is nothing like added incentive.. Why he feels the need to hold it in a bank.. hes paying taxes on it too!!! Thank u all for the clarification so that the most financially sound options can be discussed and agreed upon for my Dads future and for the futures of my and my brothers children.

As Babalou so correctly pointed out, if your father continues to "waste" his money on paying for goods and services and meeting his own living expenses, his savings will before long be below the threshold and he can claim his proper, and I would add honourably earned, entitlements.

Wilful divestment, I think they call it, the practice of giving your money away in order to duck under a means-testing limit. Not fraud, but clearly not the kind of loophole your father is comfortable exploiting, either.

So, the way I see it, y'all would have him give away money in order to receive less than $2,000/month in VA aid?

I think you need to consult with an expert as to what the best course of action is.

Where did MEDICAID Come Into this conversation???? My question is regarding WW2 PENSIONS.. Any person Can Gift something like $14000 per yer per person.. i dont no the particulars.. These pensions only look back 3 DAYS.. not 5-7 years... u r CONFUSING my Question... No one mentioned Medicaid.. only questins about THIS article on This Site :https://www.agingcare.com/articles/VA-benefits-for-veterans-and-their-caregivers-136403.htm

NO ONE HAD MEDICAID.. who said anything about medicaid???

He can speak with an elder law attorney who can advise him. When his assets are below the amount allowable he should apply for VA services. He certainly deserves it because of his service to his country. It's not fraud, and the service helps tremendously.

lisweetsue, Giving money away will not disqualify him for VA benefits, but it would definitely be a problem with Medicaid. Medicaid looks back 5-7 years at what you gifted or put in the kids names, even if you gave them your car. Your brothers are taking the safer course to protect Dad's coverage.

Is giving money to grandkids or elsewhere to qualify for his WW2 pension dishonest or illegal in any way?

If he keeps spending his capital on services then he WILL qualify for aid.