To receive a Michigan Veterans’ Aid and Attendance Pension Benefit, a veteran must have served on active duty, at least 90 days, with at least one day during a period of war. There must be an honorable discharge. Single surviving spouses of such veterans are also eligible.

If younger than 65, the veteran must be totally disabled. If age 65 and older, there is no requirement for disability. There is no disability requirement for a single surviving spouse.

The veteran household cannot have income exceeding the Maximum Allowable Pension Rate or MAPR. If income exceeds MAPR, there is no benefit. However, a special provision for calculating Pension income, allows annual household income to be reduced by 12 months worth of future, estimated, recurring medical expenses. Normally, income is only reduced by medical expenses incurred in the month of application. These allowable, annualized medical expenses are such things as insurance premiums, Medicare premiums, the cost of home care, the cost of paying any person to provide care, the cost of adult day care, the cost of assisted living and the cost of a nursing home facility.

This special provision can allow veteran households earning more than the annual MAPR to qualify for Pension. As an example, a veteran household earning $6,000 a month could still qualify for Pension if the veteran is paying $4,500 to $6,000 a month for nursing home costs.

Here is an example of how this would work with a veteran whose income exceeds the MAPR but is paying for medical expenses and home care. In our example, annual monthly family income is $2,800 a month. Unreimbursed medical expenses for insurance premiums and home care services total $2,900 a month.  After applying a 5% medical deduction required by VA the resulting countable income is less than zero.  In this case VA considers the income to be zero.  This new countable income qualifies the veteran for the maximum monthly pension of  $1842.75.

There is also an asset test to qualify for Pension. Any asset or investment that could be easily converted into income might disqualify the claimant.  A home, used as a residence, vehicles and difficult-to-sell property are generally excluded from the asset test. VA will allow assets to be transferred or converted to income in order to meet the asset test. There is no look back penalty for transferring assets like there is with Medicaid. There are specific rules governing transfers of assets and what constitutes income from assets and it must be done correctly.

When it comes to gifting assets it is important to consult with a Michigan veterans benefits lawyer to avoid any problems that may arise if there is a need for Medicaid in the future.

The Michigan Veterans Benefits Lawyers of Witzke Berry Carter & Wander PLLC are familiar with and understands how to reallocate assets to qualify for Michigan VA benefits as well as Michigan Medicaid.  Michigan Elder Law Attorney, Christopher J. Berry, Esq. can be reached at (248) 971-1700.