John Smith- Army Veteran that served from 02/15/1972 to 02/15/1975

Married to Jane Smith

The Smith’s have signed over their deed to their daughter for the house they are living in.

Income

$1,020  John’s Social Security

$1,080  Jane’s Social Security

$700     Jane’s settlement from an accident that runs out in November

Assets

Home is deeded to the son

Jane’s IRA is $200,000 with a RMD of $18,000

Total amount in bank accounts is $5,000.

Yes, due to the IRA John and Jane will be over the asset limit, but you shouldn’t stop there.

Here is how they were able to get below the asset limit:

VA allowed assets                                                         $130,773

Cushion                                                                           -$1,000

Cash                                                                                -$5,000

Allowed in IRA                                                             $124,773

IRA                                                                                 $188,263 (current balance)

allowed in IRA                                                              -$124,773

Withdrawal                                                                     $63,490

Previous Withdrawal                                                      -$18,000

Taxable Withdrawal                                                        -$81,490

Taxes                                                                                 $8,964

Withdrawl                                                                        $63,490

Legal Fees                                                                         -$7,000

Taxes                                                                                  -$8964

Paying 3 months of care                                                   -$7,689

Credit card payoff                                                             -$3,000

Excess Cash                                                                       -$3,000

Must spend down                                                           $36,837

Purchased Life in Estate in son’s home/son to use this money to renovate the home  for $36, 837.

This makes them below the asset limit.

If you have questions about VA pension, or a unique situation that you would like us to discuss, let me know by emailing michelle.bowman@swainlawfirm.net.