Under current Federal Law, there is no look back period for VA benefits under the Aid and Attendance or Homebound pension. The current U.S. Congressional session is looking at changing this.
Currently, a veteran can transfer funds in order to become eligible for certain VA pension programs. However, Senate Bill 784, introduced on April 17th, 2013 proposes to create a look back period of 36 months, beginning from the date of application. Under the pending legislation, if assets are transferred within the look back period, the transfer will create a time period of ineligibility.
Transfers of assets in Senate Bill 784 include transfers to trusts, gifts to family members, and the purchase of certain financial products designed to protect assets. The period of ineligibility is limited to 36 months, and is determined by dividing the amount transferred by the monthly pension amount the applicant would have received.
There are certain hardship provisions included in the bill, and if funds are returned, the penalty can be reduced or eliminated. We will track the legislation as it progresses in the various committees and update our website. If you have any questions regarding Arizona Veteran Benefits, or need to talk to an Elder Law Attorney, please contact Dana Law Firm at 480-515-3716.
Written by Elder Law Attorney Robin Cochran Kruger