What the Department of Veterans Affairs (VA) will not tell Veterans about the Improved Pension Benefit for War Period Veterans.

What every Veteran needs to know about Improved Pension and Death Pension.

WWI, WWII, Korean, Vietnam and Gulf War Veterans and surviving spouses are eligible for help with long term care medical expenses.

“KNOW THE FACTS”

The average pension benefit is significantly less than half of the maximum pension benefit for Veterans ($10,000 compared to $25,000) and surviving spouses ($5,000 compared to $13,560).

The VA estimates that less than 10% of eligible Veterans or widows are receiving this benefit.

All veterans who served on active duty during a war period (did not have to serve in a war zone), served 90 days active duty and had a better than dishonorable discharge are eligible. (Enlisted Veterans who entered active duty on or after September 8, 1980 and officers who entered active duty on or after October 16, 1981 must have served 24 months or their tour, if shorter.)

Vietnam and Korean are qualifying wars for the purpose of this benefit. There is an additional period for Veterans who served in country in Vietnam through August 5, 1964.  After August 5, 1964, they can qualify without being in country.

The period for most wars is longer than is generally thought to be. The WWII period ended December 31, 1946. The Gulf War started August 2, 990.

Every Veteran who has served the required period and recieved a general or better discharge is eligible for this benefit if they meet the health requirements and require assistance with their daily living activities.

Disabilities do not have to be related to service injuries.

This is a needs based benefit; that means there are income, net worth and medical considerations.

Surviving spouses have a similar benefit. Basically the same rules apply, except they cannot have remarried a non-veteran and they do not have to be over 65.

There is no limit on total income, only on income for VA purposes (IVAP). IVAP is the income remaining after paying unreimbursed medical expenses.

If the veteran is over age 65, he does not have to prove unemployability.

Net worth does not count residence, one auto, burial policies or personal property.

There are no figures in the regulations that tell how much net worth is too much. (There are misinformed people who believe the claimant can have as much as $80,000 net worth and qualify.)

Allowable net worth is what the VA says is OK.

The VA does not like a claimant to have even a nominal amount of net worth (generally, no more than the amount of assets that would be used for support in the next two years).  Assets can be repositioned before applying for Improved Pension without causing a problem with the VA. (It can cause income tax problems and a penalty period for Medicaid.)

All of the proceeds from selling the residence after filing for Pension will be added to the net worth for determining qualification. (Many claimants lose the benefit for this reason.)

Life insurance proceeds and inheritances will be counted as income for VA Pension qualification purposes. Without proper legal planning, this could cause a requirement of payback of benefits to the VA.

Attorneys can give advice that the VSOs are not allowed to give and are responsible for being knowledgeable about many senior issues.

Couples must count all of the income, assets and medical expenses of both Veteran and spouse.

War period Veterans who are married to war period Veterans can receive more pension than a war period Veteran with a spouse but less than two single war period Veterans. There is a marriage penalty for two qualified married Veterans.

A claimant cannot receive both service connected disability and pension. They can only receive the greater of the two benefits.

A Veteran can get military retirement pay and Pension. It is treated the same as any other income source.

A Veteran who has retired from the military and is receiving less than 50% service connected disability is not receiving any addition compensation for their injury. A portion of their retirement pay is paid as a disability payment; therefore, it is tax free. A Veteran can request that none of their retired pay be paid as compensation in order to receive the full pension benefit.

Filing a claim with too much net worth, too much monthly income, not enough medical expense, no medical need or not responding timely to the VA’s request for more information can be very expensive as you could lose years of eligibility.

Attorneys are fiduciaries. That means by law they must act in the best interest of their client. They are also required to be competent in any area of law in which they are getting paid. They can be held accountable for their advice.

VETERAN SERVICE OFFICES (VSOs) get very limited training on Pension rules, if any. They cannot be held accountable for their advice. They receive no training on income taxes, Medicaid, elder law issues, elder abuse or financial matters. These are complex matters that most attorneys have not mastered.

No one can be paid to help you complete an application.

No one but an accredited attorney, an accredited agent, or VSO can help prepare a claim.

MAXIMUM PENSION for 2015

Applicant Status	Max Monthly Benefit Allowed
Married	$2,120
Single Veteran	$1,788
Widow	$1,149