Aid & Attendance Handbook for Professionals & Consultants
Information for ALL Long Term Care Benefits for Veterans


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Using the Program to Estimate Aid and attendance pension benefit Benefit and Maximize Income after TransfersWe have provided single page copies of the software screen as well as the screen entry instructions in the support packet. The purpose is to allow the planner to use the sheets side-by-side and make it easier to compare the screen to the explanation text. In addition, we have provided a single page worksheet to allow the planner to estimate the loss of income from transferred assets or to add new income in. We have also furnished the worksheet as an Excel spreadsheet that automatically adds the numbers together for those who prefer this method. The results of the worksheet are typed into the software program to test the maximum level of income retention against the maximum available aid and attendance pension benefit benefit. The software automatically calculates the aid and attendance pension benefit benefit based on inputs of unreimbursed medical costs, current non-asset income, new asset income, and estimated new income after asset transfers. (A single page copy of the worksheet is also in the support packet.)In this section we will explain the entries made by the planner into the software screen. Use the screenshot from the forms packet to follow along.In the next section we will present our readers with two case studies -- #1 and #2 -- that use the worksheet for income and asset transfers. These case studies also illustrate the claims process for each example. Finally, copies of both completed worksheets will be displayed. In addition, the corresponding entries in the software screen and the benefit estimates will also be displayed.Instructions for Screen EntriesExplanation of the display boxes on the software screen (Please locate the screen shot in the support packet to use as a reference as you go through each numbered entry description.)#1- Name of client
Enter the name of the client. The client and the veteran may be two different people.#2- Age of veteran if living-- enter zero if not living
Enter the age of the veteran not the age of the client. If the veteran is deceased enter "0". This will key the software program to calculate a death aid and attendance pension benefit benefit for housebound or aid and attendance.#3- Age of spouse or surviving spouse-- enter zero if no spouse
Enter the age of the spouse if the claim is for a death aid and attendance pension benefit. If there is a veteran and a spouse there should be an age in the entry for the veterans age as well as this entry. With two ages entered, the software program is keyed to return the aid and attendance pension benefit benefit for a couple with aid and attendance or housebound allowances. If the veteran is single and has no spouse or the spouse is deceased enter a "0". This entry will key the software program to return a aid and attendance pension benefit benefit for a single veteran for aid and attendance or housebound allowance.#4- Estimated household income for next 12 months
There is no entry in this window. This entry is automatically calculated from other entries on the screen.#5- Estimated unreimbursed medical expenses for next 12 months
Calculate the 12 month annualized recurring medical expenses for home care or assisted living or nursing care or other similar care that qualifies for prospective treatment. Add to this amount the recurring 12 months of health insurance premiums. If there are any very large one-time medical expenses in the month of application add these on as well. Enter the sum of these amounts in the window. Do not subtract 5% of MAPR. The program will do this for you. See Chapter 5 for details on what qualifies as recurring unreimbursed medical expenses.#6- Estimated net worth assets for estate test
From the worksheet or from your notes enter the total household net worth assets. See Chapter 5 for more details on determining net assets for aid and attendance pension benefit claims.#7- Choose a ceiling for VA asset limit
We discuss in some detail in Chapter 5 and in planning examples the fact that VA has no statutory ceiling for allowable assets beyond which aid and attendance pension benefit is declined. $80,000 is usually cited as the ceiling and it is unlikely VA will allow any claim above this limit. But there are instances where the asset limit is much lower. It depends on the analysis of the veterans service representative who adjudicates the claim. We have provided guidelines in Chapter 5 and in our planning cases further on in this chapter.#8- Previous monthly household income before gifting or annuity
Enter here the monthly household income before any transferring of assets.#9- Estimated new monthly income with gifting or income annuity
This is not an entry but a calculation based on the income from assets after transfers and income produced from an annuity created from previous assets.#10- Current amount of assets
This is not an entry any carryover from the amount of assets entered in "Estimated net worth assets for estate test " above.#11- Investment income from assets before transfer
This is either a calculation and entry from the worksheet in Chapter 6 or in the forms packet or this is in an entry from your notes. We have also furnished this worksheet as an Excel program on the software disk.#12- New investment income after transfer plus trust income if any
This is a calculation and entry from the worksheet in Chapter 6 and in the forms packet or from your notes. We have also furnished this worksheet as an Excel program on the software disk. Please note that if there is no transfer of assets there should be no change in this entry from the previous entry above. Both entries for investment income before transfer and after transfers should be the same.#13- Amount of assets exceeding the VA ceiling
This is not an entry but a calculation based on assets before transfers and the VA asset ceiling that you chose to enter in "Choose a ceiling for VA asset limit"#14- Amount of assets exceeding the ceiling, to be gifted
Enter here the amount of assets that will be gifted or put into a trust. If the VA ceiling you have chosen is greater than household assets this amount will be $0.#15- Remaining assets for a single premium income annuity
This is not an entry. If the amount of assets entered in entry "Amount of assets exceeding the ceiling, to be gifted" is less than the amount in entry window "Amount of assets exceeding the VA ceiling" this entry will calculate the difference between the two. This is what is remaining beyond the asset ceiling that can be converted into an income annuity.#16- Monthly annuity income from single premium above
There are at least nine to 15 different income options for the same single purchase annuity. Enter here the amount of any option you choose. You may have an annuity calculation program that gives you these results. Our you can get a good current quote by going to www.immediateannuities.com.#17- Remaining assets after gifting and/or annuity conversion
This is not an entry. This is what is remaining of assets after gifting or annuity conversion and equals the VA asset ceiling you entered above.Veteran "Housebound" with one dependent
This window will return a value between $0 and $1,395.Veteran "Aid and Attendance" with one dependent
This window will return a value between $0 and $1,801Veteran "Housebound" without dependents
This window will return a value between $0 and $1,113Veteran "Aid and Attendance" without dependents
This window will return a value between $0 and $1,520Death Benefit Aid and attendance pension benefit with "Housebound" allowance
This window will return a value between $0 and $746