For the last three years the Veteran's administration and advocates have been wrestling with rule changes that the VA proposed approximately three years ago. The final rule changes were just announced in the Federal Register on September 18, 2018. That means the changes will become effective October 18, 2018.

The changes are dramatic and will have long lasting effects for our clients.

First and foremost, there is good news that the changes to the VA Pension program are not retroactive in nature. This was a very real concern since the VA was playing their position on this close to the vest. This means that any planning done before October 19th will be under the old rules.

For years, it has been a frustration that it was not possible to tell the asset limit that a VA Claimant could keep because there was an actuarial component to the calculation. In other words, the older someone was, the less they were allowed to keep.

The new rule establishes a bright line net worth limit of $123,600 subject to annual increases. The net worth calculation takes into account the sum of the claimant's assets and annual income. So, while the calculation will still be tricky, it will no longer be necessary to guess just how low the assets need to get based on the claimant's age before a claim for VA Pension should be submitted.

The primary residence will continue to be excluded as an asset for VA Pension purposes, even if, in some cases the claimant is not residing there.

Currently, there is no look-back under the VA rules. Under the new rule there will be a three-year look-back along with up to a five-year penalty.

In this elder law today, we can only scratch the surface of these new rules. Keep a lookout for the education events we'll be providing to the community in the coming weeks.

   For more information:

How to find a long term care home for your loved one

Caring for a Veteran at home - VA benefits may cover the cost

What to know about applying for VA Aid and Attendance benefits