In addition to providing information and guidance regarding the VA Special Monthly Pension, he or she can also assist clients with planning strategies to help them obtain the Special Monthly Pension while keeping an eye on the possibility that it may be necessary to qualify for Medicaid in the months or years to come.
Unlike Medicaid, which has a five year look back period for determining financial need and eligibility, there is no look back period or penalty for gifts given prior to applying for the Special Monthly Pension. This may making gifting assets seem like an easy option for qualifying, but it it is a strategy that should be used with caution, and under the advice of an elder law attorney experienced with both VA benefits and Medicaid.
The most common problem that we see with gifting assets to qualify for the Special Monthly Pension is that while the family’s current income and the Special Monthly Pension may be enough to cover the needs of a housebound person or someone who needs regular aid and attendance, it is rarely enough to cover the costs of a nursing home when the person’s health declines further. Keeping in mind that nursing homes can run $5,000 to $9,000 per month, depending on the level of care needed, it’s easy to see why many families need the help of Medicaid to cover nursing home expenses.
If the veteran gifts assets, he could be disqualifying himself from receiving Medicaid benefits, as Medicaid will penalize the same gift that the VA will overlook. Because of this, it is important to enlist the help of an expert if you need help qualifying for either the Special Monthly Pension or Medicaid. Be very wary of anyone offering to do so for free, as these offers tend to be designed to trick you into buying annuities that can affect your eligibility for both programs.By law, the only people permitted to assist with VA applications are: Veteran Service Commissioners, recognized veterans service organizations such as the VFW, and licensed attorneys. An elder law attorney knowledgable with both the VA programs and Medicaid is the safest option.
