A Place for Mom's Family

Ok, I(I am POA)  am applying for the VA Aid and Assistance Pension for my father.  He has alzheimers and 81.  I was told to open a joint checking account with my name and my dad's name for the direct deposit of the VA pension to be deposited. Also I was told to sign over the deed of the paid home to me and set the proceeds up in a savings account under my name with my mother and father as beneficiaries. They have an annuity of $310/month.  I was told to transfer ownership of the annuity to myself and keep my mother and father as annuiant. Who will pay taxes on the proceeds of the home?  Does someone pay tax on the annuity?   Please help.  no one seems know.

"someone" seems to be giving you pretty detailed advise on actions to take.

If that 'somebody' cant answer these basic secondary questions.......why are you working with them????

1. you obviously havent gotten the award so why are you opening a joint account?

2. why are you signing over the deed?     if someone told you to do that they dang well better know what the tax results are of that transaction

3.What 'proceeds' from signing the deed?

4. they didn't explain how annuity income is taxed?  Is it a private annuity or a pension type of annuity?

The answers you need are much more complcated than can truely be answered in a forum. Please feel free to contact me.

What state are your parent living in?  Did anyone expalin the effects this will have if one of your parents requires medicaid to pay for nursing home care?

Thanks for your response.  My father is in Indiana.  There is no "look back" period with the VA, so transferring over the deed to the house has to be done prior to the application date. Thet watch income and net worth of the veteran.  With the application of someone who has alzheimers, the VA won't give a pension to someone with a mental condition.  With the application, you have to send a voided check with the fiduciary's name and the veteran's name on it, thus the joint check.

 I am dealing the a veteran's advocate.  I have an appointment with an attorney next week and just was trying to educate myself before the appointment.

 Thanks for your help.

jennifer,

I have done over 100 VA apps so I understand the root of the questions. My point is that these 'veteran advocates' seem to not really understand the deeper parts of "Benefits"

Let me explain how the process works, although, you could read the posts and get alot of your questions resolved.

1. 21-2680 Doctor form.  this is the key to the entire process.  a.) you fill it in to the best of your ability. b.) you write so neat a blind person could read it. c.) under diagnosis, you show the date it started, this could trigger retro benefits for up to a yr back for the date of the app.. d.) when it asks on question 26, 27 etc to explain why he cant before the activity, you have to put (example) :  "vet can not prepare his on meals because he has Deep Vien Thrombosisi and can't stand longer than 2 minutes withuot having ot set down because of the intense pain"    you have to have a because and it has to tie back to the diagnosis.

2.) there is a one page form that can be sent in NOW, that will hold your place in the application process. Otherwise they will only concider the app once everything is complete, THEN they use the next month as the month of application.

3.) I am well aware there is no lookback for VA. But as I said in my post, are you going to lose the nursing home benefit form mediciad by your actions w/va?  And yes, I know...."i'll never put my parents in a nursing home".   that is a wonderful sentiment to have but it clashes with God's plan for each of us.  IF one of your parents has a strokE or some dramatic medical event that REQUIRES nursing home care, then what.  VA does not pay for nursing home. This is all I do. For the last 11 years. Only Seniors in CARE

Hopefully, though, you have already been told all this so your good to go.

And hopefully, the VA will let you be the representative.  THey do backgound checks.  Fanmily is NOT always the first choiceby the VA.  My point is, the last thing you should be worring about is opening accounts.  The VA will let you know if/and when you need to open an account.  Don't think that attaching a void check solves that problem.

You skipped the annuity question. You cant change ownership on a retirement account without dad paying taxes on the entire amount. But if it is an annuity that he bought with after tax dollars, he can.

And CARE is 100% tax deductable (1997 tax law) as a medical expenses (7.5%)  An of course disability income is not taxed.

Good luck,