VA Benefits

VA benefits are often confusing, as is the process for applying for them. Many people believe they are not entitled to benefits because they did not serve long enough in the military or they did not go overseas during a war. Both of those assumptions may be incorrect. A veteran, or surviving spouse of a veteran, may qualify for some sort of VA benefit if the veteran served 90 days of active duty and one of those days was during a declared state of war. The veteran did not have to be overseas, or even see combat, if one of those 90 days was during a declared state of war.

There are two types of VA benefits: compensation and pension. Compensation is for veterans who have a service connected disability or injury. The disability or injury is rated as a percentage of loss (10%, 20%, etc., up to 100%), and the percentage can increase after a claim is filed.

Pension is a benefit for a veteran or an un-remarried surviving spouse who is either unable to work due to disability or is age 65 or older. This benefit requires that a veteran have been on active duty for 90 days with one day during a declared state of war, and with a discharge other than dishonorable. It is a benefit based on income, assets and need. Along with pension, a veteran or surviving spouse may qualify for additional money if they are housebound or in need of aid and attendance.

First, the dates of the declared states of war are as follows:

Mexican Border Period: May 9, 1916 – April 5, 1917

World War I: April 6, 1917 – November 11, 1918

World War II: December 7, 1941 – December 31, 1946

Korean Conflict: June 27, 1950 – January 31, 1955

Vietnam Era: August 5, 1964 – May 7, 1975 (begins February 28, 1961 if in the Republic of Vietnam at that time)

Persian Gulf: August 2, 1990 – date yet to be determined

The maximum available pension resource is the maximum pension a veteran or surviving spouse can receive depending on need. The maximum monthly pension rates for VA for 2010 are:

Veterans Benefits:

$985 – Basic Pension – Veteran without a Spouse

$1,291 – Basic Pension – Veteran with a Spouse

$1,204 – Housebound Pension – Veteran without a Spouse

$1,510 – Housebound Pension – Veteran with a Spouse

$1,644 – Aid and Attendance – Veteran without a Spouse

$1,949 – Aid and Attendance – Veteran with a Spouse

Surviving Spouse Benefits:

$660 – Basic Pension – Widow/Widower

$807 – Housebound Pension – Widow/Widower

$1,056 – Aid and Attendance – Widow/Widower

The maximum available pension resource is reduced by income. Income, for VA purposes, is gross household income less any out-of-pocket medical expenses, also referred to as unreimbursed medical expenses. Examples of these expenses include Medicare premiums, other health insurance premiums, in home care, hygienic supplies, adult day care, nursing home or assisted living expenses, etc…any medical expense that is incurred and not reimbursed.

If the VA counted income is more than the maximum available pension resource, the VA will not pay any benefits to the veteran or surviving spouse. For example, a veteran without a spouse who has $1500 per month in gross household income and unreimbursed medical expenses of $500 per month would receive no benefit ($1500 – $500 = $1000, which is greater than $985).

If the VA counted income is less than the maximum available pension resource, then take the maximum available pension resource and subtract the VA counted income, and that is the pension amount. For example, a veteran who is married and needs assistance, with $1500 per month in gross household income and $3000 per month in unreimbursed medical expenses would receive $1949 per month, because his or her VA counted income is $0. However, if the unreimbursed medical expenses were $1000 per month, the veteran would get approximately $1449 per month ($1949 {maximum pension} – $500 {VA counted income, which is $1500 – $1000} = $1449).

“Housebound” is when a person is substantially confined to his/her house/immediate premises for reasons that are likely to continue through his/her lifetime. “Aid and attendance” is when a person is unable to perform their activities of daily living without the assistance of another person (i.e. dressing/undressing, transferring, bathing, etc.).

The VA will also consider a veteran’s/surviving spouse’s assets before determining pension entitlement. Assets that are not considered include the home, vehicle, personal possessions, assets in an irrevocable trust, or certain types of annuities. The general guidelines for the VA in determining pension eligibility based on assets is $80,000 for a married couple and $50,000 for a single veteran or surviving spouse. However, there is no exact resource limit. The VA will review the age of the applicant, the costs of care and the illnesses of the applicant.

Unlike ALTCS (or Medicaid), there are no look back periods related to VA benefits. The VA does not penalize the veteran or surviving spouse for transferring or gifting assets.

We have tried to give you a brief overview of compensation and pension benefits available through the VA. The VA offers many more benefits, such as reduced pharmacy costs, burial plots, nursing home benefits and others. Each benefit has its own set of eligibility criteria. There is a lot of misinformation in the public domain! Please be sure to get correct information by contacting the Arizona Department of Veteran’s Services, any other veteran’s service organization or an attorney with experience in this area.

By The Kile Law Group