Financial Benefits: Veterans and Surviving Spouses

Financial Benefits Are Available to Veterans and Surviving Spouses.

By Matthew T. Stillman

Veterans and their families, or surviving spouses of veterans, may be eligible for healthcare, assisted living, homecare, and nursing home expenses through the Veterans’ Administration.

The Veterans’ Administration (“VA”) offers a benefit to veterans and their families if qualified health care expenses consume most or all of their monthly income. This benefit, known as “the low income pension benefit,” is a bit of a misnomer because it does not really apply to people with low income; it applies to veterans with qualified health care expenses that eat up most of the veteran’s income or the income of the veteran’s surviving spouse. Thus, if a veteran or a veteran’s surviving spouse is using most of his or her income to pay for homecare, healthcare, assisted living or skilled nursing expenses, the VA will provide a tax free monthly payment, currently up to $1,100 for a surviving spouse, $1,700 for a veteran and $2,100 for a veteran and his or her spouse.

The criteria for eligibility are: 1) income eligibility, 2) asset eligibility, 3) medical eligibility, 4) qualifying discharge and 5) wartime service (theater of combat not required). Many veterans/surviving spouses aren’t aware that they are eligible for this benefit; only 15% of eligible participants apply. Veterans/surviving spouses mistakenly believe that combat service is required, or they have too much money to qualify. These are common misperceptions. Even if one is ineligible, relatively simple estate planning can be completed to convert a veteran/surviving spouse into an eligible participant.

This low income pension benefit can be an invaluable aid because it allows veterans and/or their spouses to receive tax-free income with no strings attached. Unlike Medicaid, for example, there are no repayment provisions to the government and one can qualify for the benefit with relative ease. Once the benefit has been obtained, veterans may be able to afford additional homecare services, if living at home, or may be able to move to an assisted living and/or senior community without fear of depleting one’s assets.

There are a number of different benefits available to veterans and their families, including financial assistance, education, medals and awards, health care expenses and assistance, to name a few. If you have any questions about veterans’ benefits to which you may be entitled, either as a veteran or surviving spouse, you may wish to consult with an accredited veterans’ benefits attorney. If you do not know an accredited veterans’ benefits attorney, this firm would be pleased to assist you.